Sonic reiterated FY19 guidance at its AGM, albeit with a slight tick-up on an A$ adjustment, expecting a typical second-half earnings skew. Guidance nonetheless depends on no further regulatory changes outside those already known for the US and Germany.
The broker considers geographic diversity a key positive for the stock, but has made slight valuation model adjustments which see its target fall to $23.50 from $23.90. Neutral retained.
Sector: Health Care Equipment & Services.
Target price is $23.50.Current Price is $22.45. Difference: $1.05 – (brackets indicate current price is over target). If SHL meets the UBS target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).