Brokerage UBS lowers PT on Australia's Sonic Healthcare

Sonic Healthcare

19/11/2023 23:24

** UBS cuts PT on Sonic Healthcare Ltd  SHL.AX  to A$34.10
from A$36.50 based on higher costs estimates  
    ** Healthcare firm on Thursday confirmed FY24 EBITDA
guidance of A$1.7-1.8 billion ($1.11-1.17 billion) and posted 7%
YTD organic base business revenue growth, in line with UBS'
forecast
    ** We retain our Buy rating based on the idea that solutions
to prevent revenue leakage in the US can deliver unrecognised
upside in 2H24 and beyond - brokerage 
    ** Cuts EBIT estimate down by 8% for FY24 and 4% for FY25
due to slow improvement in operational expenditure 
    ** 7 of 15 analysts rate the stock "buy" or higher, 5 "hold"
and 3 "sell"; their median PT is A$34.50 – LSEG data
    ** Stock down 1.6% this year, as of last close


($1 = 1.5366 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru; editing by Diane
Craft)
 ((Poonam.Behura@thomsonreuters.com;))