Citi ups PT for Australia's Sigma Healthcare after regulator approves merger with Chemist Warehouse
07/11/2024 21:05
** Analysts at Citi raise PT for Sigma Healthcare SIG.AX
to A$2.50 from A$1.40; maintain "Neutral" rating
** Wholesale pharmaceuticals distributor SIG received on
Thursday Australian competition watchdog's approval for an A$8.8
bln ($5.87 bln) merger with private firm Chemist Warehouse
** Brokerage says the upgraded PT reflects Chemist
Warehouse's potential in the combined Sigma Chemist Warehouse
Group
** Brokerage expects the combined group to generate EBIT of
~A$800 mln in FY26, its first full year
** "The combined group should continue to perform well in
the prevailing high cost of living environment" - Citi
** "The network continues to grow in Australia and there are
prospects for further international expansion" - Citi
** Stock has more than doubled in value this year, as of
last close
($1 = 1.4997 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru)
((Sherin.Sunny@thomsonreuters.com))