Morningstar says Australia's Sigma Healthcare stock moderately overvalued
BUZZ-Morningstar says Australia's Sigma Healthcare stock moderately overvalued ** Morningstar says Sigma Healthcare's SIG.AX shares are moderately overvalued, with the market expecting a slightly faster domestic store rollout
** The investment research firm maintains its narrow moat rating and A$2.60 fair value estimate, lower than its previous close of A$2.89
** Expects sales growth to moderate lower with the current 'abnormal' growth from weight-loss drugs and sees a fiercer competitive response as it encroaches on supermarkets' sales
** Sees midcycle operating margins to settle at 16% by fiscal 2035, compared with 9% in fiscal 2025, on increasing contributions from higher-margin franchise fees, others
** Eleven of 14 analysts rate the stock "buy" or higher, and three "hold"; their median price target is A$3.40, as per data compiled by LSEG
** Down 1.7% YTD, as of last close
(Reporting by Anjali Singh in Bengaluru)