Morgan Stanley rates ANN as Equal-weight

Published: 2026-05-05 22:31:09 ET MS

Published on 05/05/2026 at 10:31 pm EDT

Morgan Stanley assesses oil-linked risks in the Australian Healthcare sector, identifying Ramsay Health Care and Sonic Healthcare as the most exposed to cost inflation driven by higher oil prices.

Oil now presents a cost headwind for the sector, increasing component, consumables and freight expenses.

Lower margins and limited pricing power amplify earnings sensitivity for Ramsay and Sonic, the analysts explain. ResMed and Fisher & Paykel Healthcare are viewed as best positioned, supported by higher margins and stronger pricing power.

Equal-weight rating maintained for Ansell. Target reduced to $29.30 from $34.40. Industry View: In-Line.

Sector: Health Care Equipment & Services.

Target price is $29.30.Current Price is $25.81. Difference: $3.49 - (brackets indicate current price is over target). If ANN meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).