Sonic Healthcare is under Algo Engine buy conditions and is a current holding within the ASX 100 model portfolio.
SHL has strengthened its US footprint with the purchase of Aurora Diagnostics for US$540m, (A$750m), mainly funded with up to a A$700m equity raise.
The placement is priced at A$19.50/share, an 8.8% discount to the last
FY19 revenue $6.2bn, EBITDA $1.1bn, net profit $5.30mn, EPS $1.22, DPS$0.90 places Sonic on a forward yield of 4.5%
We recommend buying Sonic Healthcare and selling a covered call option to enhance the income.