Medibank Private has signalled no change to its FY20 health earnings outlook and no change to dividend forecasts.
ASIC has announced private health insurance companies can hold a liability at balance date to allow for the suspension of non-essential elective surgery.
This allows Medibank Private to assess the full impact of savings instead of having to refund premiums.
Credit Suisse assesses the pandemic provides an insight into alternative care options that may assist in accelerating reform of the industry in order to address affordability and participation.
The broker continues to believe the stock is “relatively safe” and retains an Outperform rating and $3 target.
Sector: Insurance.
Target price is $3.00.Current Price is $2.76. Difference: $0.24 – (brackets indicate current price is over target). If MPL meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
