Macquarie observes growth in Germany is subdued and there are challenges in that region as well as in the US because of reduced reimbursement. However, the broker also considers the changes present opportunities for acquisitions.
Lower Australian collection centre rents also present possible additional upside. These aspects inform the broker’s investment view, with revisions to estimates for earnings per share of -2% for FY19 and -4-5% for FY20-21.
Target is reduced to $24.30 from $27.20. Macquarie maintains a Neutral rating.
Sector: Health Care Equipment & Services.
Target price is $24.30.Current Price is $22.46. Difference: $1.84 – (brackets indicate current price is over target). If SHL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).