HLS - Morgan Stanley rates the stock as Equal-weight
PUBLISHED
2022-06-14
Content
Morgan Stanley again lowers its EPS forecasts for Healius due to a faster-than-expected decline in PCR testing and a slower recovery in the base pathology business in-line with the industry decline. In addition, volumes for diagnostic imaging have disappointed.
The cost-out program and the sustainable improvement program (SIP) targets are uncertain, explains the analyst.
The broker keeps the Equal-weight rating as there is only a small risk to FY22 expectations and the outlook is expected to improve in FY23. Target price reduced to $3.75 from $4.40. Industry view: In line.
Sector: Health Care Equipment & Services.
Target price is $3.75.Current Price is $3.68. Difference: $0.07 - (brackets indicate current price is over target). If HLS meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).