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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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