Financial Services

Medibank enters trading halt following evidence of hacking

By Market Index
Thu 13 Oct 22, 4:22pm (AEST)
Cyber attack
Source: Unsplash

Key Points

  • Medibank Private has been the victim of a cyber-attack
  • There is no evidence any sensitive data has being accessed
  • Services to 3.7m members were disrupted

Close on the heels of an incident experienced by Optus, within which personal information including Passport numbers and driver's licences were leaked, Medibank Private (ASX: MPL) entered a trading halt this morning following revelations that the health insurer has also been a victim of a cyber-attack.

There is no evidence that yesterday’s incident has resulted in any sensitive data, including customer data being accessed.

However, management advise the market of plans to isolate and remove access to some customer-facing systems, disrupting some services to its 3.7m members.

Precautionary measure

In a precautionary measure, the health insurer’s ahm and international student policy management systems have been taken offline and is expected to remain offline for most of the day.

Medibank CEO David Koczkar advised investors the company was working "around the clock to understand the nature of the attack" and notes the isolation of several customer-facing systems would reduce the likelihood of damage to systems or data loss.

"We recognise the significant responsibility we have to the people who rely on us to look after their health and wellbeing and whose data we hold," he noted.

What brokers think

Year-to-date Medibank’s share price has bounced from $3.45 to a high of $3.79 late-August, back around where it started at $3.52.

Consensus on the stock is Moderate Buy.

Based on Morningstar’s fair value of $3.61 the stock appears to be undervalued.

Based on the seven brokers that cover Medibank (as reported on by FN Arena) the stock is currently trading with 6.8% upside to the target price of $3.75.

Regardless of Medibank Private's reasonably cheap valuation, Citi is attracted to the performance from its private health insurance business, where the broker expects reasonable top-line growth, and a 15% profit growth target.

The broker retains a Buy rating and the target price increases to $4.00 from $3.85.

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Medibank Private's share price over 12 months.

 

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Market Index

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