Sonic Healthcare's German labs deal to be immediately EPS accretive - Citi

Sonic Healthcare

03/04/2023 20:37

** Australia's diagnostics firm Sonic Healthcare Ltd
 SHL.AX  on Monday announced a binding agreement to acquire
Germany-based laboratory group Diagnosticum
    ** The acquisition will be immediately EPS accretive and the
return on investment will exceed the costs associated with the
acquisition, Citi says
    ** Brokerage rates SHL "buy" with A$36.0 PT 
    ** Key takeaways from SHL's site visits earlier in the month
include opportunities to further consolidate the market and
ability to maintain margins in line with pre-Covid levels - Citi
    ** Eight of 16 analysts rate the stock "buy" or higher,
while 4 each rate "hold" and "sell"; median PT is A$35.55 –
Refinitiv
    ** Stock up 17.1% so far this year, as of last close

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))