06/09/2024 17:00

Healius (HLS) $1.65

HLS -2.65% was hit hard early today, down as much as 9% at the lows before recovering. The drop was a result of Barrenjoey downgrading the stock to sell with a $1.37 price target, a bearish view that is actually aligned with the majority in the market i.e. more analysts have a negative outlook on HLS.

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02/09/2024 09:57

Active Growth Portfolio – Amendments

We are making two changes to the Active Growth Portfolio.

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22/08/2024 09:24

Healius Ltd (HLS) $1.66

HLS soared +12.9% on Wednesday following its FY24 result, which beat the average analyst estimates. Margin improvements caught the eye, plus the potential for some value accretive asset sales.

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01/03/2024 09:30

Healius Ltd (HLS) $1.11

One of the positive aspects that shone through this reporting season has been the ability of companies to reduce costs to maintain profits as top-line growth becomes harder. This flexibility was enhanced through COVID, where companies had to be incredibly nibble as many watched sales plummet overnight. The opposite is true at Helius, with COVID testing volumes a huge win for their pathology business, underpinning a significant uplift in sales.

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21/11/2023 09:25

Healius Ltd (HLS) $1.83

HLS is looking to raise $187mn through a rights issue at $1.20, a steep 34.6% discount to the stock's last trade on Friday – they needed the cash! The offer was on a 1-for-3.65 basis, with the freshly listed equity looking to list under a separate ticker code as its suitor, Australian Clinical Labs (ACL), still has its scrip-only offer open.

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27/10/2023 09:06

Healius Ltd (HLS) $1.93

HLS is testing its 2020 lows as debt levels weigh on investor sentiment. e.g. on June 30th, their gearing ratio was at 3.48x, still below the latest increased 4.0x covenant agreed with bankers. At the start of the month, we wrote, “We think HLS is residing in the “if in doubt, stay out” category as long-dated yields rise at a time when their debt levels are simply too high, the stock has subsequently fallen -11% but nothing’s changed.

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05/10/2023 09:01

Healius Ltd (HLS) $2.17

HLS fell another -1.4% yesterday, taking the stock down towards its COVID lows, debt levels are likely to be weighing on investor sentiment – on June 30th, their gearing ratio was at 3.48x, below the latest increased 4.0x covenant agreed with bankers.

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30/08/2023 17:03

Healius (HLS) $2.92

HLS +7.75%: A tough year for HLS culminated in a poor result, although it was not as poor as the market was expecting, EBITDA was actually a touch better however net profit was weaker given higher interest expense. Revenue of $1.7bn dropped down to just $25m in profit as they grappled with multiple challenges which caused them to scrap their final dividend – a prudent move given gearing remains too high. In terms of commentary, imaging with solid while pathology was turning, and given the cost out and improving demand, FY24 should be a better year.

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20/03/2023 16:52

Healius (HLS) $3.01 & Australian Clinical Labs (ACL) $3.68

HLS +8.27%: Healius jumped today after a takeover bid from competitor Australian Clinical labs was announced pre-market. The deal would see Healius shareholders receive 0.74 ACL shares for each HLS owned, which represents no premium to Friday’s close price, but Healius shareholders would end up with 68% of the combined group.

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17/02/2023 09:19

Healius Ltd (HLS) $3.02

HLS probably shouldn’t be on today’s list but it rallied strongly this week including a +7.1% move yesterday, however, the stock did initially fall after its report 10 days ago - it’s now recovered most although not all of those losses. The drop in mass COVID testing hurt its 1H earnings and investors simply don’t believe its optimism for the 2nd half, but as SHL illustrated diagnostic testing is gaining strength. However to play this post-COVID theme we prefer SHL i.e. the stronger option.

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