Morgan Stanley assesses the federal government's allowed premium increases for each private health insurer and the industry are in line with expectations for the majority of Ramsay Health Care's Australian revenue base.

In FY20 the broker assumes 3.5% organic revenue growth in Australian hospitals. Equal-weight rating retained. Target is $61. Industry view is In-Line.

Sector: Health Care Equipment & Services.

Target price is $61.00.Current Price is $71.46. Difference: ($10.46) - (brackets indicate current price is over target). If RHC meets the Morgan Stanley target it will return approximately -17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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