FY21 underlying earnings were below expectations. No FY22 earnings guidance was provided although Credit Suisse notes the outlook commentary is positive.
Coronavirus testing is accelerating and the broker expects this will contribute $425m in revenue and $180m in EBITDA in the first half.
Credit Suisse remains conservative and assumes testing rates decline in the second half. Outperform retained. Target is raised to $5.35 from $5.00.
Sector: Health Care Equipment & Services.
Target price is $5.35.Current Price is $4.67. Difference: $0.68 – (brackets indicate current price is over target). If HLS meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
