As testing for the coronavirus rapidly rises in key markets Credit Suisse models the revenue and earnings opportunity.
The broker expects testing rates to remain robust until there is a vaccine, unlikely to be available until mid 2021.
The broker expects testing will add 13% to operating earnings in FY21.
However upside in estimates is only included for the US, given low infection rates in other markets or reimbursement restrictions.
Outperform retained. Target rises to $33.50 from $32.50.
Sector: Health Care Equipment & Services.
Target price is $33.50.Current Price is $31.38. Difference: $2.12 – (brackets indicate current price is over target). If SHL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).