NHF - Morgans rates as Hold
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The company has announced a government-approved price increase from April 1 of around 3.9%. The reduced increase is largely in line with Morgans' expectations.
However, with private health insurance costs still rising at around 5% per annum the broker envisages downside risks to margins. Morgans believes the risk of disappointment at the upcoming results is relatively low but considers the price full.
Hold rating and target raised to $6.13 from $5.89 on the rolling forward of valuation.
Target price is $6.13.Current Price is $6.79. Difference: ($0.66) - (brackets indicate current price is over target). If NHF meets the Morgans target it will return approximately -11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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