Credit Suisse raises FY22 estimates for earnings per share by 45% because of higher coronavirus testing rates. The broker forecasts the testing will contribute $570m in revenue in the first half of FY22.
Credit Suisse now assumes reimbursement rates continue into 2022, unlikely to be cut with the election due next year. The broker also highlights FY23 estimates are not factoring in the full upside from international travel testing.
Outperform retained. Target rises to $5.50 from $5.35.
Sector: Health Care Equipment & Services.
Target price is $5.50.Current Price is $4.89. Difference: $0.61 – (brackets indicate current price is over target). If HLS meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
