Credit Suisse finds considerable uncertainty prevails for FY20 and FY21 earnings and does not envisage much upside for the share price. The broker finds listed health insurers expensive.
Private health insurance profit growth has been slowing recently, driven by a slowdown in premium growth and a stabilising of the margin.
Hence, the broker downgrades to Underperform from Neutral. The main risks to the negative view are acquisitions, funded from the debt-free balance sheet. Target is steady at $2.50.
Target price is $2.50.Current Price is $2.71. Difference: ($0.21) – (brackets indicate current price is over target). If MPL meets the Credit Suisse target it will return approximately -8% (excluding dividends, fees and charges – negative figures indicate an expected loss).