Morningstar says Sonic Healthcare shares undervalued on earnings recovery view
BUZZ-Morningstar says Sonic Healthcare shares undervalued on earnings recovery view ** Morningstar says Australia's Sonic Healthcare SHL.AX shares are undervalued, maintains A$32 fair value estimate
** Investment research firm more optimistic than consensus on SHL's earnings improvement from scale benefits, labour productivity gains and cost savings
** Expects the medical diagnostics services provider's EBITDA margins to rise to 21% by fiscal 2035 from 18% in fiscal 2025 on network rationalisation and acquisition synergies
** Morningstar says long-term demand supported by population growth, ageing demographics and higher disease incidence
** Five of 15 analysts rate the stock "buy" or higher, seven "hold" and three "sell" or lower; their median PT is A$24.35, according to data compiled by LSEG
** Stock has fallen 12.7% this year, as of last close
(Reporting by Roshan Thomas in Bengaluru)
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