Credit Suisse has learnt further details on the newly formed JV with the two large London hospital trusts.
The JV will be known as Health Services Laboratories and generate an additional GBP50m over and above the revenue associated with the historical UCLH contract.
The broker believes the key to success for Sonic will be winning additional NHS work and building scale within the new facility. An Underperform rating and $19.00 target are retained.
Sector: Health Care Equipment & Services.
Target price is $19.00.Current Price is $19.52. Difference: ($0.52) – (brackets indicate current price is over target). If SHL meets the Credit Suisse target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).