Ramsay Health Care's revenue result was a low single digit beat to Morgan Stanley, offset by lower margins. Higher interest expense offset by a lower tax rate saw a miss on profit from continuing operations of -7%.

Overall, Australia was a significant detractor, the broker notes, offset by the UK and Sante at the margin line. At the group level, it was a miss before taking account of the minorities from loss-making Sante.

While it was ultimately a decent beat on earnings, the market may take consideration of the poor performance of Australia and loss-making Sante, Morgan Stanley suggests.

Target rises to $55.00 from $49.60, Equal-weight retained. Industry view: In-Line.

Sector: Health Care Equipment & Services.

Target price is $55.00.Current Price is $54.91. Difference: $0.09 - (brackets indicate current price is over target). If RHC meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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