A trading update from Healius was been largely as anticipated by Macquarie, with the company reporting revenue improvement in all divisions, although still below pre-covid levels, and the broker anticipates base business improvement heading into FY23.
Delivery of both the Sustainable Improvement Program (SIP) and the Laboratory Information System (LIS) is largely unchanged, but the broker notes the LIS integration, expected to be delivered in two years, looks to provide $15-20m in annual benefits.
The Outperform rating and target price of $5.20 are retained.
Sector: Health Care Equipment & Services.
Target price is $5.20.Current Price is $4.22. Difference: $0.98 – (brackets indicate current price is over target). If HLS meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
