*** HLS - Breakout ***, page-18

HLS - HEALIUS LIMITED
Macquarie rates HLS as Outperform (1) - Macquarie reviews the pathology margins, noting these have declined over time but expansion is now likely to FY23.Contributions from Covid-19 testing as well as a recovery in base volumes are positive indicators going forward. There is also opportunities for growth, given an improved balance sheet.A demonstration of operating leverage within pathology will be a catalyst for a multiple re-rating, in the broker's view. Outperform retained. Target rises to $3.80 from $3.70.Target price is $3.80 Current Price is $3.33 Difference: $0.47 If HLS meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges). Current consensus price target is $3.51, suggesting upside of 5.3%(ex-dividends)The company's fiscal year ends in June.Forecast for FY21:Macquarie forecasts a full year FY21 dividend of 3.80 cents and EPS of 13.90 cents .At the last closing share price the estimated dividend yield is 1.14%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.96. How do these forecasts compare to market consensus projections?Current consensus EPS estimate is 15.7, implying annual growth of N/A.Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 1.7%.Current consensus EPS estimate suggests the PER is 21.2.Forecast for FY22:Macquarie forecasts a full year FY22 dividend of 7.20 cents and EPS of 15.70 cents .At the last closing share price the estimated dividend yield is 2.16%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.21. How do these forecasts compare to market consensus projections?Current consensus EPS estimate is 16.8, implying annual growth of 7.0%.Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.3%.Current consensus EPS estimate suggests the PER is 19.8.Market Sentiment: 0.5All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources