Morgan Stanley, J.P. Morgan start newly public Auna at overweight (NYSE:AUNA)
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Morgan Stanley and J.P. Morgan started coverage of newly public Auna (NYSE:AUNA) with overweight ratings.
Morgan Stanley said the Latin American hospital operator, which also offers health plans, “has entered an organic growth phase, expanding earnings from the occupancy ramp-up in hospitals with limited CAPEX, and deleveraging from its strong operating cash generation.”
The investment bank added that its “base case was dependent” on a ramp up of hospitals in Mexico, although political upheaval in Columbia could impact short-term results. It set its price target for the stock at $14.
J.P. Morgan, meanwhile, said Auna stock was trading at a 10% to 15% discount to its peers, “yet our model suggests the company should trade in line given the good and similar growth prospects on the operating front.”
The bank said despite “several moving pieces in the case from its diverse geographic exposure, we see a compelling risk-reward at current price levels.”
J.P. Morgan set a price target for the stock of $16.
Auna went public via a US initial public offering in March that raised $360M.
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