Citi upbeat on Australia's Sonic Healthcare buying German pathology group; raises PT

Sonic Healthcare

10/12/2024 03:59

** Citi sees earnings growth for Australia-based Sonic
Healthcare  SHL.AX  as healthcare services firm acquires LADR, a
German pathology group, in a deal worth 423 mln euros ($446 mln)
    ** Raises PT to A$28 from A$27; retains "neutral"
    ** Says deal will increase SHL's market share in Germany
from 20% to 25% of total revenue
    ** Maintains neutral stance citing uncertainties around
integrating co's new acquisition and current valuations
    ** SHL trades flat, while benchmark S&P/ASX 200 index
 .AXJO  sheds 0.3%
    ** Stock down 10% YTD

($1 = 0.9478 euros)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))