Citi trims PT on Australia's Healius as earnings forecast misses estimates

Healius

22/11/2023 20:07

** Citi cuts healthcare firm Healius's  HLS.AX  price target
on lower-than-expected earnings forecast and dilutive capital
raise   
    ** Brokerage cuts PT to A$1.25 from A$2.15, maintains
"neutral" rating 
    ** Citi says co's FY24 EBITDA forecast of A$383 mln ($249.26
mln) to A$393 mln is 7% below Visible Alpha's consensus estimate
    ** Brokerage says it does not think the capital raise will
fundamentally change the economics of HLS's merger with
Australian Clinical Labs  ACL.AX , but puts HLS in stronger
financial position 
    ** Citi cuts HLS's FY24-26 EPS forecast by 60%, 43% and 56%,
respectively
    ** One of 10 analysts rate stock "buy", 6 "hold" and 3
"sell" or lower; their median PT is A$1.90 - LSEG
    ** Stock down ~57% YTD, as of last close


($1 = 1.5366 Australian dollars)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))