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Investing.com - Morgan Stanley (NYSE:MS) upgraded Medibank Pvt Ltd. (ASX:MPL) (OTC:MDBPF) from Equalweight to Overweight and raised its price target to AUD5.57 from AUD4.50.
The financial services firm cited Medibank’s strong health insurance franchise with consistent margins and multiple levers to sustain its performance as key factors in the upgrade decision.
Morgan Stanley highlighted Medibank’s ongoing transformation into a broader health company through investments in primary and specialist care, positioning it as an investment opportunity in the longevity theme.
Despite Medibank shares rising 34% year-to-date compared to the ASX200’s 4% gain, Morgan Stanley considers the company’s approximately 21.5x next-twelve-months price-to-earnings multiple "undemanding" compared to both its historical valuation and other high-quality financial stocks.
Morgan Stanley forecasts steady earnings per share growth of 6-7% for Medibank in fiscal years 2025 through 2027, with the new price target representing the highest among analysts covering the stock.
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