bearish
Sigma Healthcare (SIG AU): Merger Uncertainty To Limit Upside Potential
271 Views27 Mar 2024 09:30
SUMMARY
- Sigma Healthcare (SIG AU)'s proposed merger with Chemist Warehouse Group is being reviewed by Australian Competition and Consumer Commission (ACCC), with decision expected in 2H24.
- Although Sigma is witnessing continuing momentum in its business (YTD sales are up by 6.6% YoY) and reaffirmed EBIT margin guidance, merger uncertainty overshadows the improved financial performance.
- We think near-term positives of the company have already been priced in, thereby limited room for upside potential. Merger uncertainty will remain an overhang on the share prices.
Get started on the Smartkarma Research Network with a complimentary Preview Pass to:
- Unlock all research summaries
- Follow top, independent analysts
- Receive personalised alerts and emails
- Access Briefings, Analytics, and Events
Upgrade anytime to our paid plans for full-length research, real-time analyst discussions, and more.
Join a thriving community of 45,000+ investors, including the top global asset managers managing over $13trn in assets.
or
Already have an account? Sign In Now
Discussions
(Paid Plans Only)
Top Quartile
Tina Banerjee
Global Healthcare Analyst
Price Chart(Sign Up to Access)
- Sigma Healthcare (SIG AU): Merger Uncertainty To Limit Upside Potential27 Mar 2024
- SIG/CWG Merger: Back Door Entry to the ASX200; Other Index Implications12 Dec 2023
- Sigma Healthcare (SIG AU): Chemist Warehouse's Reverse Takeover11 Dec 2023
- Autonomous Driving- Are We There Yet?20 Mar 2018
x