Citi lowers EPS estimates for Aussie healthcare cos on declining COVID testing volumes

Sonic Healthcare

18/09/2022 21:57

** Brokerage Citi lowers price targets and EPS estimates for
Australian healthcare companies as COVID-19 testing volumes
continue to decline
    ** Citi assumes no COVID revenue for Australian Clinical
Labs  ACL.AX , Healius Ltd  HLS.AX  and Sonic Healthcare
 SHL.AX  from FY24 resulting in FY23-25 EPS cuts, but maintains
"neutral" rating an all three cos
    ** For SHL, brokerage cuts EPS estimate for FY23 and FY24 by
4% and 9% respectively; moves PT to A$34.50 from A$34.75
    ** Citi forecasts SHL to have no debt by FY24
    ** Brokerage lowers FY23, FY24 and FY25 EPS estimates for
HLS by 33%, 9% and 6% respectively; cuts PT to A$3.75 from
A$4.00
    ** Citi expects HLS to end FY24 at the top end of usual
gearing range for the industry and says potential sale of Day
Hospital division could result in lower debt levels
    ** Brokerage also trims FY23-25 EPS estimates for ACL by
36%, 20% and 9% respectively; cuts PT to A$4.15 from A$4.50


 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))