Jefferies cuts earnings estimate, PT on Australia's Sonic Healthcare

Sonic Healthcare

22/11/2023 20:22

** Analysts at Jefferies cut FY24-25 earnings view on
Australia's Sonic Healthcare  SHL.AX  by 1.1% each, citing low
volume growth in pathology business globally, among others  
    ** Brokerage also trims price target for co to A$32.90 from
A$34.50; maintains "hold"
    ** Medical diagnostics firm reiterated its FY24 earnings
forecast of between A$1.7 bln and A$1.8 bln ($1.11 bln to $1.17
bln) at its recent AGM
    ** Co recently acquired Pathology Watch for $130 mln, which
according to Jefferies will result in an EBITDA loss of $10 mln
per annum
    ** Seven of 15 analysts rate the stock "buy" or higher, five
"hold" and three "sell"; their median PT is A$34.10 – LSEG data
    ** Stock down ~4% this year, as of last close

($1 = 1.5366 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))