Australia's Sigma Healthcare rises as Morgan Stanley initiates with  a positive outlook

Sigma Healthcare

02/05/2025 06:23

** Shares of retail pharmacy franchisor Sigma Healthcare SIG.AX up 2.7% at A$3.1, their highest since February 17

** Morgan Stanley starts with "Overweight" and PT of A$3.45

** Cites defensive earnings and sales growth on sector consolidation, cost, and revenue synergies

** Expects over 20% EBIT/EPS VAGR from FY25-28

** Adds, SIG's merger with Chemist Warehouse offers significant and potentially understated synergies from supply chain efficiencies and improved store productivity

** Stock up 17.8% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))