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Citi cuts PT on Australia's Ramsay Health Care, sees risks to growth across businesses

ReutersSep 19, 2025 2:46 AM

Analysts at Citi Research cut price target for Australia's Ramsay Health Care RHC.AX to A$36 from A$40, factoring in a more 'realistic' growth prospects for the group

Now see a 10% lower FY26 EPS than previous estimate

Analysts say co's guided increase in FY26 EBIT from Australia faces risks from upcoming wage discussions in Victoria and Queensland

Note 'highly uncertain' prospects for co's 52.8% owned French care provider Santé due to sustained upward wage pressure and small increases in reimbursement

Say despite a 9% growth in FY25 EBIT from UK business, ceased capex growth for UK site Elysium, along with persistent occupancy problems and cost pressures entails a longer recovery period for Elysium

Currently, shares trading flat, falling 1.85% over the week to A$32.950

YTD, stock down 4.6%

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