** Shares of Australia's Ramsay Health Care RHC.AX fall as much as 1.4% to A$34.14
** Morningstar says RHC shares are now trading at about a 40% discount to its A$62 fair value estimate; says shares are undervalued
** Investment research firm retains its earnings estimates for the healthcare provider till FY29
** Says while margins are constrained by digital expenses in the near term, it expects this to drive cost efficiencies in longer term by optimising staff levels and reducing administrative paperwork
** Says expects margin expansion as activity trends in higher-margin work recover and staff availability increases
** Forecasts FY25 underlying EBIT to grow by 5% to A$1.09 bln ($678.20 mln)
** RHC fell 34.3% in 2024
($1 = 1.6072 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru)
((Rishav.Chatterjee@thomsonreuters.com;))
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