For Sonic Healthcare, FY27 Hinges on Three Regions

Dow Jones
09/03

2243 GMT [Dow Jones]--Jefferies's takeaway from Sonic Healthcare's annual result last month: FY27 hinges on three regions. Analyst David Stanton says the U.S. remains the key drag. Sonic has begun an operating review of its U.S. operations targeting organic growth and margin recovery off a low base. In the U.K., integration delays to a big new contract and labor costs are weighing on performance. Sonic's focus in the U.K. is shifting to organic growth and efficiencies, Jefferies says. "And Australian Radiology's margin dilution from greenfield investment should ease on cost discipline and productivity gains," it adds. Jefferies retains a hold call and A$21.00/share price target on Sonic, which ended Wednesday at A$18.73.

 

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