Australia's Sonic Healthcare rises, Morningstar says shares undervalued
BUZZ-Australia's Sonic Healthcare rises, Morningstar says shares undervalued Updates
** Shares of Sonic Healthcare SHL.AX climb as much as 2.3% to A$20.2, their highest level since late-April
** Morningstar says SHL shares are undervalued, maintains A$32 fair value estimate
** Investment research firm more optimistic than consensus on SHL's earnings improvement from scale benefits, labour productivity gains and cost savings
** Expects the medical diagnostics services provider's EBITDA margins to rise to 21% by fiscal 2035 from 18% in fiscal 2025 on network rationalisation and acquisition synergies
** Morningstar says long-term demand supported by population growth, ageing demographics and higher disease incidence
** Five of 15 analysts rate the stock "buy" or higher, seven "hold" and three "sell" or lower; their median PT is A$24.35, according to data compiled by LSEG
** Stock down ~11% this year
(Reporting by Anjali Singh and Roshan Thomas in Bengaluru)
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