Analysts predict soft landing for Sonic Healthcare from COVID-era windfall

Sonic Healthcare

17/08/2023 19:45

** Analysts at Citi and Jefferies predict an upside to
Australian medical diagnostics firm Sonic Healthcare's  SHL.AX 
earnings post 2025
    ** Brokerages forecast new acquisitions and base business
growth to continue to support earnings even as COVID-era
windfall fizzles out
    ** SHL on Thursday reported a 53% drop in FY23 net profit to
A$685 mln ($438.54 mln), with COVID-19 revenue tanking 80% to
A$485 mln
    ** Jefferies expects 3.7% revenue CAGR from FY19 to FY24,
with NPAT likely to "faster than this over the medium term"
    ** Jefferies cuts PT to A$34.50 from A$36.60 on weak health
comparable multiples view, retains "hold"
    ** Citi cuts PT to A$38.00 from A$40.50, retains "buy"
    ** Citi predicts acquisitions, radiology growth, potential
benefits from using artificial intelligence to support earnings
in FY25 and beyond
    ** Seven of 18 analysts rate SHL "buy" or higher, four
"hold" and seven "sell" or lower; their median PT is A$35.45 –
Refinitiv data

($1 = 1.5620 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))