SIG – UBS rates the stock as Upgrade to Neutral from Sell

UBS estimates a combined earnings benefit of $8m for Sigma Healthcare from 2021 on the basis of the pharmacy wholesale funding in the seventh Community Pharmacy Agreement.

Earnings forecasts are updated accordingly, resulting in upgrades of 11-12% over the forecast period.

Any benefit, nevertheless, will be required to offset PBS price reductions and higher logistics/freight costs.

Rating is upgraded to Neutral from Sell as the stock is now considered fair value. Target is raised to $0.61 from $0.53.

Sector: Health Care Equipment & Services.

Target price is $0.61.Current Price is $0.62. Difference: ($0.01) – (brackets indicate current price is over target). If SIG meets the UBS target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →