Medibank Private : Ord Minnett rates MPL as Lighten

First half health insurance earnings were below Ord Minnett's forecasts, reflecting the pressure on gross margins.

However, Medibank Private flagged cost savings and scope for capital management which the broker suspects pleased the market.

Nevertheless, margin pressure remains too great to ignore and a Lighten rating is maintained. Target is reduced to $2.70 from $2.90.

Sector: Insurance.

Target price is $2.70.Current Price is $2.91. Difference: ($0.21) - (brackets indicate current price is over target). If MPL meets the Ord Minnett target it will return approximately -8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena