Morgan Stanley analyst Andrei Stadnik maintained a Hold rating on Medibank Private Ltd. (MDBPF – Research Report) today and set a price target of A$4.25.
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Andrei Stadnik has given his Hold rating due to a combination of factors influencing Medibank Private Ltd.’s current and future performance. While the company has demonstrated strong health margins and a better pricing outlook, with health insurance premiums set to rise, these positive aspects seem to be already reflected in the current share price. The stock is trading at approximately 19.5 times its FY26E P/E, which aligns with its historical average, suggesting limited room for further re-rating.
Despite Medibank’s efforts to contain claims growth and explore new growth avenues, such as Medibank Health and potential M&A activities, its earnings per share growth is projected to be slower compared to other insurers. The anticipated reduction in cybercrime costs and the potential earnings boost from acquisitions are positive, yet they do not significantly enhance the company’s growth prospects relative to its peers. Consequently, Stadnik sees better opportunities for EPS growth in other general insurers, justifying the Hold rating.
In another report released today, Citi also maintained a Hold rating on the stock with a A$3.90 price target.