A strong 2H result reassured the broker about the strength of Sonic’s pathology business even in the face of funding pressure.
The broker also buys in to the company’s plan yo fully pass on the domestic funding cuts.
So with Deutsche thinking a strong first half result is likely and the fact management appears to be refocused on finding bolt-on acquisitions, the broker thinks the "outlook remains bright". Buy call and $15.00 target maintained. Sector: Health Care Equipment and Services.
Target price is $15.00.Current Price is $14.08. Difference: $0.92 – (brackets indicate current price is over target). If SHL meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).