Bell Potter initiates coverage on Australia's Sonic Healthcare with a 'buy' rating

Sonic Healthcare

19/06/2025 04:05

** Shares of Sonic Healthcare SHL.AX little changed, up 0.4% at A$26.34, on the day

** Bell Potter initiates coverage on Sonic with "buy" tag and target price of A$33.7, a 28.5% premium to stock's last close

** Sonic is a pathology firm with operations in Australia, Europe and North America

** Bell Potter expects Sonic's EBITDA margins to recover in FY25 following the restructure of its business, the impact of acquisitions in FY24, and normalising organic operations post the COVID-19 pandemic

** Brokerage expects growth of 7.9%, 9.1% and 9.7% in revenue, EBITDA and normalised NPAT, respectively, for fiscal 2025

** Bell Potter also sees the genetic testing segment as driving material improvement in group performance over time

** Stock down 2.5% YTD, including the day's moves

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))