- Older people require more healthcare
- People all over the world are living longer
- Medical diagnostics are the starting point for most healthcare issues
Sonic Healthcare is a global leader in multiple healthcare services – pathology, laboratory medicine, diagnostic imaging, and medical centres. Sonic is the largest laboratory medicine and pathology provider in Australia, Germany, the UK, and Switzerland. Sonic’s subsidiary ranks third in the US market.
The company is committed to growth by acquisition due to the opportunities presented by the fragmented nature of healthcare services worldwide. Sonic had acquired more than 40 companies across the world, and in April 2023, two more operations in Germany were added to the list.
Sonic’s mix of healthcare services allowed the company to benefit to some degree from the COVID-19 Pandemic. However, Half Year 2023 results suffered as revenues from COVID-related issues declined, leading Sonic to a 40% revenue decline and a 54% profit drop.
Despite the disappointment, the stock price quickly recovered, posting a 16.32% gain year to date.
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Sonic has increased its dividend payments every year over the last decade, with a 5-year average payment of $0.88 per share and a 5 Year average dividend yield of 2.84%.
Sonic was upgraded to a BUY recommendation from Fat Prophets following the German acquisitions.
Citi has a BUY recommendation on the stock with a $40 per share price target.