Morningstar initiates coverage on Australian Clinical Labs

Australian Clinical Labs

15/06/2023 20:34

** Morningstar initiates its coverage on Australian Clinical
Labs  ACL.AX  with a price target of A$3.5 and an uncertainty
rating of 'medium' 
    ** Brokerage says shares appear slightly undervalued
    ** Morningstar says markets are underestimating the speed
and extent of doctor visits recovering, and subsequently, ACL’s
pathology volumes
    ** We think ACL’s historical investment strategy to focus on
lower-density Australian states was value-accretive for
shareholders - Morningstar 
    ** Brokerage, however, sees a five-year group revenue
compounded annual growth rate of negative 4% forward to fiscal
2027
    ** Four of five analysts rate the stock "buy" or higher, one
"hold"; their median PT is A$4.00 – Refinitiv Eikon data 
    ** YTD stock is up 9.4% so far this year, as of last close

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))