Jefferies cuts PT for Australia's Sonic Healthcare on German policy reforms

Sonic Healthcare

25/03/2026 18:58

** Analysts at Jefferies cut price target for Australia's Sonic Healthcare SHL.AX to A$22.55 from A$25.60; reiterate "hold" rating

** Brokerage says if under neuGOÄ, or private health reinsurance reimbursement reform in Germany, the estimated FY28 average reimbursement decline is 20%, the medical diagnostics services provider's EBITDA would decline nearly 11%

**  In terms of volume, the reform is set to negatively impact hospital and self-referrer profitability, which could lead to outsourcing to larger labs like SHL and could also create acquisition opportunities — Jefferies

** SHL Germany is expected to contribute 27% to group EBIT in FY26, with GOÄ comprising 30% of total German revenue — Jefferies

** 8 out of 14 analysts recommend "hold" for SHL, 5 "buy" or higher and 1 "sell"; set the median PT at A$24.68

** SHL down 10.9% YTD

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.singhchundawat@thomsonreuters.com))