We completely missed this one on Friday – for which our apologies. A general sector update on diagnostic services in Australia has led to the conclusion that weak growth has been an issue for the industry today and likely to remain an issue for the time being.
Mild earnings downgrades have been implemented for Sonic, but the target falls to $21.80 (was $22.60) and the rating has been pulled back to Underperform. Note DPS estimates have been cut too.
Sector: Health Care Equipment & Services.
Target price is $21.80.Current Price is $21.86. Difference: ($0.06) – (brackets indicate current price is over target). If SHL meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).