Health care
Thoughts on the following please, IDX, ACL and SHL.
The first two seem to have picked up steam post COVID, and IDX has the potential merger with CAJ, whereas SHL continues to plod along. Worth holding/buying?The Latest Q&A
Answer
Hi Robert,
Three different stocks in the healthcare space that we’ve looked at individually:
- Integral Diagnostics (IDX) – the merger with Capitol health (CAJ) may have enjoyed a little traction last week as the huge Chemist Warehouse/Sigma Healthcare move received a tick of approval from the ACC. We like IDX ~$3 believing it can grow revenue steadily in the years ahead plus it has added spice of M&A possibilities.
- Australian Clinical Labs Ltd (ACL) – this pathology providers FY24 revenue beat analyst expectations in August and the stock looks solid value $3.65 although the risk/reward has diminished following the stocks ~40% run in recent months.
- Sonic Healthcare (SHL) – the stock hasn’t moved for 6-months and although its held firm after a guidance miss in July its still 50-50 to us and not cheap enough to risk further operational issues, i.e. its a laggard for a reason.
