MS prefers value stocks to heavyweights in Aussie healthcare

ResMed

20/07/2021 05:00

** Morgan Stanley says its preferences among Australian
healthcare firms lean towards "value stocks" rather than
traditional heavyweights
    ** "High-growth offshore earners present valuation
challenges and are priced for unlikely perfection," MS analysts
say in a note
    ** Brokerage "overweight" on glove maker Ansell  ANN.AX ,
healthcare firm Medibank  MPL.AX , assisted reproductive
services provider Monash IVF  MVF.AX  and diagnostic services
provider Sonic Healthcare  SHL.AX 
    ** Says market giant CSL's  CSL.AX  forecast may disappoint
as it expects FY22 to be a "look through" year before a rebound
in FY23
    ** Downgrades hearing implant maker Cochlear  COH.AX  to
"equal-weight" from "overweight" rating
    
       Company           RIC     New PT   Old PT
       Cochlear         COH.AX    A$230    A$227
         CSL            CSL.AX    A$271    A$267
       Healius          HLS.AX   A$4.65   A$3.95
 Integral Diagnostics   IDX.AX   A$5.20   A$4.60
      Monash IVF        MVF.AX   A$0.95   A$0.90
        Resmed          RMD.AX   A$30.10  A$26.30
   Sonic Healthcare     SHL.AX   A$39.50  A$38.60
    Virtus Health       VRT.AX   A$6.05   A$5.05
 
 (Reporting by Shashwat Awasthi)
 ((Shashwat.Awasthi@tr.com
mailto:Shashwat.Awasthi@thomsonreuters.com))