SHL – CIMB Securities rates the stock as Neutral

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CIMB Securities rates the stock as Neutral

The interim report surprised to the downside. CIMB analysts acknowledge the geographical spread of Sonic’s operations helps to mitigate risks, but they have some doubts whether synergy capture and cost-outs can offset increasing global fee structure adjustments?

Pathology is becoming the global means for governments to save on healthcare costs, observe the analysts, and this means ongoing headwinds for Sonic. Earnings forecasts have been lowered. Price target drops to $13.45 from $13.65 prior. Neutral rating retained.

Sector: Health Care Equipment & Services.

Target price is $13.45. Current Price is $12.85. Difference: $0.60 – (brackets indicate current price is over target). If SHL meets the CIMB Securities target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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