Sonic Healthcare’s earnings fell slightly short of UBS estimates despite a beat on revenue thanks to a solid contribution from Aurora.
A strong performance from Australia and UK pathology and imaging was not enough to offset margin weakness in the US.
As the stock is trading on a 24.7x forward PE versus an average 21.3x the broker retains Sell. Target unchanged at $26.50.
Sector: Health Care Equipment & Services.
Target price is $26.50.Current Price is $31.58. Difference: ($5.08) – (brackets indicate current price is over target). If SHL meets the UBS target it will return approximately -19% (excluding dividends, fees and charges – negative figures indicate an expected loss).