Credit Suiise notes policyholder growth trends continued further in the September quarter, and expects margins to stay strong in the private health insurance sector. This is based upon the September Private Health Insurance quarterly statistics released by APRA.
The broker also points to ongoing market share gains by Medibank Private at the expense of BUPA. The Outperform rating and $3.70 target price are retained.
Target price is $3.70.Current Price is $3.50. Difference: $0.20 – (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).