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HLS – what caused the drop?

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HLS – what caused the drop?

Hi guys, Quick question on Healius. I missed the trade alert (my fault - I love how you guys get the alerts to us quickly) for HLS and was wondering if the underlying premise to buy is still ok given Barrenjoey downgrading HLS.

Answer

Hi Tim,

Yes, we still like it and rehashed our view in another question today. There was nothing really new in Barrenjoey’s take on HLS, they just see it as too expensive, but that’s pretty much the consensus view in the market. While broker downgrades will generally lead to a short sharp sell-off, they provide a good test of underlying demand for the stock, in this case, the recovery from the lows was encouraging on Friday.

 

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