** Morningstar cuts its fair value estimate for "no-moat" APM Human Services to A$2 from A$2.40, while trimming earnings forecast
** Brokerage cuts near-term earnings before tax forecasts for health and human services provider by 18% on average over next two years, citing lower unemployment rates
** Morningstar trimmed long-term gross margin forecast to 28% from 29%
** Brokerage believes there is "zero probability" of APM's takeover by its largest shareholder Madison Dearborn Partners (MDP); says shareholder-recommendation will be a challenge as it sees offer as "disappointing"
** MDP offered to buy all remaining APM shares at A$1.40/ shr
** APM said it is still evaluating offer
** Company board unanimously rejected CVC Asia's offer of A$1.60 cash/shr on Feb. 19
** APM shares up 33.1% YTD, as of last close
(Reporting by Adwitiya Srivastava in Bengaluru)
((Adwitiya.Srivastava@thomsonreuters.com;))
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