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HLS - Macquarie rates the stock as Outperform

PUBLISHED

2022-05-18

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Ahead of the strategy day for Healius on May 20, Macquarie refreshes its forecasts.

While near-term base pathology volumes/benefits have been impacted by covid, the broker forecasts a growth recovery in FY23, with margins aided by the sustainable improvement program.

After allowing for earnings revisions and an updated Macquarie risk-free rate, the target falls to $5.20 from $5.40, while valuation appeal sees the Outperform rating kept.

Sector: Health Care Equipment & Services.

 

Target price is $5.40.Current Price is $4.15. Difference: $1.25 - (brackets indicate current price is over target). If HLS meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).