Although covid related benefits are set to ease in coming months, Healius should stand to benefit from expected recovery in activity and face-to-face services according to Macquarie.
The broker assumes improved activity can drive 5.5% base pathology revenue growth in FY23, equating to revenue of $1.3bn. Macquarie updates its earnings per share forecasts -2%, 4% adn 3% through to FY24
The Outperform rating is retained and the target price increases to $5.40 from $5.30.
Sector: Health Care Equipment & Services.
Target price is $5.40.Current Price is $4.31. Difference: $1.09 – (brackets indicate current price is over target). If HLS meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
