Sonic Healthcare’s first-half result beat the broker, the company reporting strong organic cash flow and cash conversion of 101%.
Nearly all divisions and countries save Germany put in a solid performance. The only slight misses were a softening in sales and an easing in operating margins which were affected by German one-offs (weather) and US regulatory changes.
The broker lifts earnings forecasts slightly. Target price raised to $28 from $27.95. Add rating retained to reflect the total shareholder return of greater than 10%.
Sector: Health Care Equipment & Services.
Target price is $28.00.Current Price is $24.30. Difference: $3.70 – (brackets indicate current price is over target). If SHL meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
