Australia's largest stock trading and investment forum Australia's #1 stock forum

SHL

0.66%

$27.07 sonic healthcare limited

SHL - Moving on from the COVID ‘pop’, page-2

First 2 Last

Share
Profile

Follow
chutteeyah

41 Posts.

3

26/10/22

04:05

Post #: 64395267
Share

Originally posted by Moonshine66: ↑

Topped up on my SHL holding yesterday.

I think there is a market misread on this stock and at around $30/$31 it is oversold.

Anything you read about SHL invariably references it’s windfall gains from Covid testing. It’s true ....it happened.... and the stock price did get to dizzying levels....however pre COVID it was a stock on an upward trajectory and the ‘windfall gains’ have not exactly been pissed away ....they have strengthened the balance sheet enormously and the ongoing buybacks put this company on a very firm footing. Further acquisitions can be readily financed.

It may take another 12 months for the market to recognise that, post the COVID testing revenues washing right through, you’re still left with a solidly performing company with growing core (ie ex COVID testing) revenues.....the COVID testing was just an aberration....not something to continue ‘punishing’ the stock about (its 34% off its highs now)

I believe healthcare is one of the sectors to be going forward and it’s a good time to accumulate this quality healthcare stock while it’s oversold and out of favour.

There’s no guarantee in this bumpy market SHL won’t go lower of course ....it might head south of $30 again however with a PE of 10 and a dividend of 3.25% it’s downside looks limited to me.

Expand

i think EPS will be lower next year because there will be no more covid earning. PE will be higher and price will go down as well.

SHL Price at posting: $31.59 Sentiment: Sell Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

What's causing the cost-of-living crisis, and how to navigate it

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t