In a report released yesterday, Joseph Giordano from J.P. Morgan downgraded Auna S.A. Class A to a Hold, with a price target of $6.00.
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Joseph Giordano has given his Hold rating due to a combination of factors impacting Auna S.A. Class A’s financial outlook. The company’s operations in Mexico have not ramped up as quickly as anticipated, which has led to a downward revision in expectations for revenue and EBITDA contributions from this region. This slower growth, coupled with the company’s high leverage and a need for potential equity injections to fund expansion, has created a cautious outlook.
Moreover, the consolidated operations of Auna do not present a strong growth profile, with a modest five-year top-line CAGR driven by mature operations in Peru and slow growth in Mexico and Colombia. The company’s high leverage, with a net debt-to-EBITDA ratio expected to remain elevated, further constrains its financial flexibility. Given these challenges, along with a limited upside potential and a discounted valuation that does not sufficiently justify the risks, Joseph Giordano has opted for a Hold rating on Auna’s stock.
In another report released on November 14, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5.00 price target.