The Australian government has announced an additional $1.1bn in funding for Australia’s health response to covid-19 and will extend pathology testing for a further nine months to December 31 2021.
Credit Suisse now expects the $100 fee will persist until December, noting that, despite Australia’s low rate of infection, testing rates remain robust at 40,000 per day. The broker increases estimates for FY21 and FY22 by 5% and 9%, respectively.
Outperform retained. Target is $4.25.
Sector: Health Care Equipment & Services.
Target price is $4.25.Current Price is $4.02. Difference: $0.23 – (brackets indicate current price is over target). If HLS meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
