Following FY22 results (January year end) Citi believes near-term earnings visibility for Sigma Healthcare is limited. Also, given ongoing issues with ERP implementation and distribution centre restructuring, risks are considered to be skewed to the downside.
The company reported reported a net loss of -$7m due to the above-mentioned issues and change in SaaS accounting methodology. The broker retains its Neutral rating and increases its target price to $0.52 from $0.50.
Sector: Health Care Equipment & Services.
Target price is $0.52.Current Price is $0.53. Difference: ($0.01) – (brackets indicate current price is over target). If SIG meets the Citi target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
