Heating Up? Q2 Will Tell: Saudi Hospitals | EEMEA

Research evidence excerpt

Heating Up? Q2 Will Tell: Saudi Hospitals | EEMEA

Idea

July 14, 2026 11:01 PM GMT

Morgan Stanley & Co. International plc+MSaudi Hospitals | EEMEA Ricardo Rezende, CFA

Equity Analyst

Heating Up? Q2 Will Tell Ricardo.Rezende@morganstanley.comSylvia C Richards +44 20 7677-9886

Research Associate

Sylvia.Richards@morganstanley.com +44 20 7677-3354

Competition is intensifying as hospital operators start ramping Giulia Faro

up new assets. Concerns over prolonged margin volatility – as ResearchGiulia.Faro@morganstanley.comAssociate +44 20 7425-7581

well as oversupply in certain markets – are becoming more

EEMEA - Healthcare

acute. We reduce estimates further, but see this as mostly Europe

reflected in current valuations. We upgrade Dallah to EW. Industry View No Rating

What’s Changed

Key Takeaways AlmoosaPrice TargetHealth Co. (4018.SE) FromSAR 191.50 ToSAR 126.50

As players ramp up new capacity, focus is shifting from structural growth to

Dallah Healthcare (4004.SE) From To

prolonged margin volatility, fiercer competition and rising oversupply risk. Rating Underweight Equal-weight

Price Target SAR 108.50 SAR 119.50

After weak 4Q25-1Q26 results, execution and competition now matter more than

population growth, bed deficits or private-insurance reform. Dr. Soliman Abdel Kader

Fakeeh Hospital (4017.SE) From To

We cut estimates and valuations on lower margin assumptions; HMG remains our Price Target SAR 39.00 SAR 41.50

Top Pick, given its scale and defensive position, followed by Almoosa. Dr. Sulaiman Al Habib Medical

Group (4013.SE) From To

We upgrade Dallah to EW on improved asset focus; and cut margins/utilisation Price Target SAR 298.00 SAR 264.50

rates for Fakeeh and Mouwasat on concerns around competition and oversupply. Mouwasat Medical Services

Company (4002.SE) From To