Sonic Healthcare Ltd
SHL: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| @$ | LOCK|>!@d | LOCK|>>F$?R# |
Sonic Healthcare: Shares Undervalued as Firm Tracks to Expectations
Narrow-moat Sonic reported constant-currency revenue and EBITDA growth of roughly 10% for the first four months of fiscal 2025, both meeting our expectations. Sonic reiterated fiscal 2025 EBITDA guidance of AUD 1.70 to AUD 1.75 billion, implying 8% growth at the midpoint of fiscal 2024, and compares with our unchanged fiscal 2024 EBITDA forecast of 1.74 billion. Our long-term estimates are also unchanged, including our midcycle EBITDA margin forecast of 22% compared with 19% in the second half of fiscal 2024.
