Contents
Stock Ratings - Order of Preference 4
Changes to Ratings & Estimates 6
Morgan Stanley versus Consensus Estimates 7
New Research 8
PRY, SHL, HSP: The Growing Importance of Medical Centres caused
Australian Diagnostic Services Funding Changes 9
Diagnostic Imaging 13
Medical Centre Operating Statistics 19
Valuation 21
Valuation Summary 22
Share Price Performance (3 Months) 23
Share Price Performance (5 Years) 25
Forward One-Year P/E Relative Charts (Consensus) 27
Scenario Analysis & 1H09 Overview 29
Risk-Reward Snapshot: Ramsay Healthcare (RHC.AX, A$10.54, OW, PT
A$12.21) 30
RHC, FY09 Result Overview – Balance Sheet Strengthened 31
RHC – Morgan Stanley Current Forecasts 32
CSL Ltd. (CSL.AX, A$33.94, EW, PT A$31.78) 33
Investment Case 34
CSL – Morgan Stanley Current Forecasts 41
Cochlear (COH.AX, A$60.30, EW, PT A$55.59) 43
COH – Morgan Stanley Current Forecasts 45
Primary Health Care (PRY.AX, A$6.34, OW, PT A$6.93) 47
PRY, FY09 Result Overview 48
PRY – Morgan Stanley Current Forecasts 51
Resmed Inc (RMD; US$45.55; OW; PT US$47.16) 52
RMD, FY09 Result Overview 53
RMD – Morgan Stanley Current Forecasts 55
Healthscope (HSP.AX; A$4.43; EW; PT A$4.23) 56
Healthscope – Morgan Stanley Current Forecasts 58
Sonic Healthcare (SHL.AX; A$14.64; EW; PT A$14.02) 59
SHL, FY09 Result Overview 60