The latest Market Talks covering the Health Care sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0838 GMT - The Indonesian healthcare sector is likely to see earnings growth over 2025-2027, thanks to accelerating hospital-bed additions, says CGS International's Jason Chandra in a note. Government support is boosting new hospital openings, which will likely lead to a 7% CAGR for new beds over the period, the analyst says. Price pressures from insurers appear to be easing, which would boost hospitals' revenue, he adds. The analyst expects 12% top-line CAGR over 2025-2027. For Indonesian healthcare companies, he forecasts EPS CAGR of 14% over the same period, likely the strongest among companies on the Jakarta Composite Index. He upgrades his rating on the sector to overweight from neutral. Mitra Keluarga Karyasehat is his top sector pick, given its attractive valuation. (megan.cheah@wsj.com)
0013 GMT - UltraGreen.ai gains a bull in UOB Kay Hian, which expects the indocyanine green supplier to continue seeing strong earnings growth and attractive margins. UltraGreen has delivered robust growth momentum, with operating cash flow surging 113% in 2024 and 33% on year in 1H 2025, say UOB KH analysts in a note. Looking ahead, the analysts forecast three-year CAGR of 21% for revenue and 22% CAGR in earnings over 2024-27, supported by higher procedure volumes, expanding Asia-Pacific penetration and continued premium pricing. Growing clinical evidence, wider availability of near-infrared imaging systems and increasing surgeon training are expected to accelerate the use of indocyanine green, they note. UOB KH initiates coverage on the stock at buy with a target price of US$2.00. (monica.gupta@wsj.com)
2257 GMT - Macquarie says Monash IVF's share price appears close to fair value, as the in vitro fertilization specialist waits to see if Genesis Capital and Washington H. Soul Pattinson bid again. Monash IVF ended Thursday at A$0.865, above the consortium's A$0.80/share offer that was rejected. Monash IVF said the bid materially undervalues the company. However, Macquarie points out that while the consortium's offer is lower relative to past deals in the sector, the outlook for IVF has changed since 2022. "Incidents have potentially weighed on customer acquisition and triggered greater regulatory scrutiny, likely increasing compliance costs as additional safeguards are implemented," Macquarie says. Aggressive competition from unlisted peers, especially in Victoria state, adds pressure. (david.winning@wsj.com; @dwinningWSJ)
1012 GMT - While Philips expects organic sales growth to improve in 2026, doubling of the growth rate is unlikely, Chief Executive Roy Jakobs told Citi analysts at the Global Healthcare Conference. Philips saw growth improve 1% in 2024 and guides for around 2% in 2025, Citi analysts say in a research note. The Dutch health-technology company's call of caution means that organic sales growth should be more than 2% but less than 4%, compared with company-compiled consensus of 4.5%, Citi says. Jakobs said the company still expects margins to expand in 2026, but tariff impacts will almost double year-on-year, Citi notes. Nevertheless, Citi sees Philips on track, the analysts say. Shares trade 7.4% lower at 22.27 euros. (nina.kienle@wsj.com)
0953 GMT - Siemens AG's plan to reduce its stake in Siemens Healthineers is likely to weigh on the latter's shares, Deutsche Bank's Falko Friedrichs writes in a note to clients. The reduction structure the German technology company set out will likely take a significant amount of time to execute and as of now there are no definitive timelines, Friedrichs says. There is also a risk of flowback due to Siemens AG's plan to reduce its stake to around 30% from 67%, and the likelihood of additional Healthineers share placements as Siemens AG moves toward a potential stake below 20% in the longer term, the analyst writes. Deutsche Bank downgrades its recommendation on Siemens Healthineers stock to hold from buy and cuts its target price to 46 euros from 57 euros. Siemens Healthineers shares fall 1.4% to 41.74 euros. (william.gray@wsj.com)
(END) Dow Jones Newswires
December 05, 2025 04:20 ET (09:20 GMT)
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