While the omicron variant has resulted in less PCR testing (as RAT tests have simultaneously increased), Macquarie still retains its preference for Healius ((HLS)) over Sonic Healthcare in the sector.
The broker assume a continuation of testing volumes to FY24 for both companies albeit with lower assumed reimbursement rates. The target price for Sonic Healthcare rises to $42.40 from $42.25 and the Neutral rating is maintained.
Sector: Health Care Equipment & Services.
Target price is $42.40.Current Price is $39.19. Difference: $3.21 – (brackets indicate current price is over target). If SHL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
