Auna initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Mauricio Cepeda initiated coverage of Auna with an Overweight rating and $14 price target. The company has entered an organic growth phase, expanding earnings from the occupancy ramp-up in hospitals with limited spending, and deleveraging from its strong operating cash generation, the analyst tells investors in a research note. The firm says Auna’s low-priced health plans expand access to private healthcare in Peru and Mexico.