Following a trading update by Sigma Healthcare, Citi reduces FY22-24 EPS forecasts by -24%, -15% and -2%, respectively and lowers its target price to $0.50 from $0.60. The Neutral rating is unchanged.
Ongoing issues with an enterprise resource planning system, resulting in a significant loss of market share, and covid-related issues were primarily responsible for the earnings downgrades, explains the analyst.
Management downgraded underlying earnings (EBITDA) guidance for FY22 by circa -15%, and now expect a -10% decline over FY21.
Sector: Health Care Equipment & Services.
Target price is $0.50.Current Price is $0.49. 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).
