Sonic Healthcare Ltd

SHL: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$42.00	Fnxtskd	Bnxrlbbxy

Coronavirus Testing Drives Explosive Yet Unsustainable Q1 2021 Sales for Sonic; Shares Expensive

Grant Slade

Oct 16, 2020

Narrow-moat Sonic Healthcare’s involvement in coronavirus, or COVID-19, testing in Europe, the U.S., and Australia delivered eye-popping sales growth of 29% in early fiscal 2021. The ultimate duration and severity of the global pandemic are unknowns, which in turn delivers substantial uncertainty as to the precise magnitude and persistence of demand for COVID-19 tests. Nonetheless, we anticipate COVID-19 testing in Sonic’s key geographies of the U.S., Europe, and Australia will remain elevated throughout the remainder of fiscal 2021.

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