Medibank Private will report its results on August 20. Credit Suisse expects the focus will be less around the profit outcome and more around the treatment of coronavirus claims and top-line trends.
If there are profit headwinds above what is attributable to the pandemic this will not be received well in the broker’s view.
Credit Suisse expects Medibank Private to pay one of the highest dividends of the APRA-regulated financials but capital management is likely to be on hold in the current environment. Outperform rating and $3 target maintained.
Target price is $3.00.Current Price is $2.84. Difference: $0.16 – (brackets indicate current price is over target). If MPL meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).