Bell Potter initiates coverage on Australia's Sonic Healthcare with a 'buy' rating
Shares of Sonic Healthcare SHL.AX little changed, up 0.4% at A$26.34, on the day
Bell Potter initiates coverage on Sonic with "buy" tag and target price of A$33.7, a 28.5% premium to stock's last close
Sonic is a pathology firm with operations in Australia, Europe and North America
Bell Potter expects Sonic's EBITDA margins to recover in FY25 following the restructure of its business, the impact of acquisitions in FY24, and normalising organic operations post the COVID-19 pandemic
Brokerage expects growth of 7.9%, 9.1% and 9.7% in revenue, EBITDA and normalised NPAT, respectively, for fiscal 2025
Bell Potter also sees the genetic testing segment as driving material improvement in group performance over time
Stock down 2.5% YTD, including the day's moves
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