Healius has completed around 50% of a $200m buyback program and Macquarie increases assumptions for the second half in line with the current run rate.
Meanwhile, coronavirus testing volumes have increased substantially over June yet this is being offset by lower base pathology revenue assumptions.
Macquarie makes minor downward revisions to estimates for FY21 but envisages the medium-longer term will show scope for margin improvement. Outperform retained. Target rises to $4.85 from $4.70.
Sector: Health Care Equipment & Services.
Target price is $4.85.Current Price is $4.63. Difference: $0.22 – (brackets indicate current price is over target). If HLS meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
