Abu Dhabi's NMC Health Target Slashed 85% at Societe Generale - Bloomberg:
NMC Health Plc received its first analyst downgrade after short seller Muddy Waters Capital LLC published a critical report on the hospital operator in December, sending the stock tumbling 69% since then.
Societe Generale cut its rating to sell from buy and slashed its price target by 85%, saying that confidence in the operator of the biggest medical network in the United Arab Emirates is “broken” after recent issues around the possible misreporting of stakes.
NMC this week said Chairman Bavaguthu Raghuram Shetty will be removed from board discussions after he said he may have misreported the size of his stake. The company is also asking its main shareholders for clarity on whether they have pledged any of their holdings as collateral, amid speculation in the market they may have faced margin calls.
“Enough is enough,” analyst Delphine Le Louet wrote in a note dated Wednesday. “We cannot invalidate MW’s accounting claims with what we know, while the lack of clarity on the corporate ownership front is unacceptable.”
NMC Health Plc received its first analyst downgrade after short seller Muddy Waters Capital LLC published a critical report on the hospital operator in December, sending the stock tumbling 69% since then.
Societe Generale cut its rating to sell from buy and slashed its price target by 85%, saying that confidence in the operator of the biggest medical network in the United Arab Emirates is “broken” after recent issues around the possible misreporting of stakes.
NMC this week said Chairman Bavaguthu Raghuram Shetty will be removed from board discussions after he said he may have misreported the size of his stake. The company is also asking its main shareholders for clarity on whether they have pledged any of their holdings as collateral, amid speculation in the market they may have faced margin calls.
“Enough is enough,” analyst Delphine Le Louet wrote in a note dated Wednesday. “We cannot invalidate MW’s accounting claims with what we know, while the lack of clarity on the corporate ownership front is unacceptable.”
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