Australia's Sonic Healthcare rises; Morningstar says shares undervalued

Sonic Healthcare

19/11/2024 02:58

** Shares of Australia's Sonic Healthcare  SHL.AX  rise as
much as 6.4% to A$27.865
    ** Stock set for strongest trading session since Feb 2023
and hits its highest since late-Oct 
    ** Analysts at Morningstar say Sonic shares are currently
undervalued as the firm is performing in line with market
expectations
    ** Shares are undervalued against our unchanged A$32 fair
value estimate, says brokerage 
    ** Morningstar estimates co's margin to expand in the long
term on increased operating leverage from higher volumes
    ** Now forecasts Sonic's Australian pathology and imaging
revenue to grow at a 5% and 7% compound annual growth rate,
respectively, over its 10-year forecast period
    ** Stock has fallen 18.3% this year, as of last close

    

 (Reporting by Namrata Verma in Bengaluru)
 ((namrata.verma@thomsonreuters.com))