Morgan Stanley has upgraded Medibank Private to an ‘overweight’ rating, anticipating strong fiscal year 2025 results for both Medibank and NIB. According to Morgan Stanley equity analyst Andrei Stadnik, Medibank Private is particularly well-positioned to capitalize on favourable claims conditions and reduced competitive pressures, paving the way for sustainable margins.
Medibank Private is Australia’s largest private health insurer, providing a range of health insurance products and services. The company aims to improve the health and wellbeing of its members through proactive health management. Stadnik noted that Medibank Private’s ongoing transformation into a broader health-focused entity should lead to higher valuation multiples.
The analyst also stated that NIB presents a less compelling risk-reward profile compared to Medibank Private. NIB is another Australian private health insurer, offering health and travel insurance solutions to residents, expatriates, and international students. Despite the preference for Medibank, both insurers have seen substantial gains in their stock values this year.
Medibank Private shares have surged by 32.7 per cent year-to-date, while NIB stocks have also enjoyed significant growth, climbing by 28.4 per cent over the same period. The upgrade reflects confidence in Medibank Private’s strategic direction and its potential to deliver strong financial performance in the coming year.
