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Investing.com - Jefferies has raised its price target on Healius Limited (ASX:HLS) (OTC:PHCRF) to AUD0.78 from AUD0.75 while maintaining a Hold rating on the stock.
The research firm expects Healius Group to achieve underlying EBIT of approximately AUD37 million in fiscal year 2026, which implies a pathology EBIT margin of 3.2%.
This projected margin represents an 80 basis point improvement compared to the firm’s expectations for fiscal year 2025.
Despite the improved margin outlook, Jefferies notes that growth prospects in the pathology sector remain challenging, specifically highlighting an anticipated decrease of approximately AUD90 million in net pathology funding in Australia for fiscal year 2026.
The research firm stated that Healius will not be immune to this sector-wide funding reduction, tempering expectations despite the company’s projected margin improvements.
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