Sonic Healthcare has acquired the US-based anatomical pathology Propath. Morgans sees the transaction as more strategic than material and notes transaction details were not disclosed. The deal is expected to be earnings accretive.

Mainly due to increased omicron-related testing assumptions, the broker increases FY22-24 estimates materially and raises its target price to $50.72 from $47.05. The Add rating is retained.

Sector: Health Care Equipment & Services.

Target price is $50.72.Current Price is $44.42. Difference: $6.30 - (brackets indicate current price is over target). If SHL meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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