Morningstar - Sigma Healthcare Ltd (SIG) Commercial Settlement Outweighs Managementâ€™s Subtle EBIT Guidance Downwards

Report

Morningstar

Chris Kallos, CFA

EUR 101.80 For Business Accounts Only

Commercial Settlement Outweighs Managementâ€™s Subtle EBIT Guidance Downwards

Narrow-moat-rated Sigma Healthcare has announced the resolution of its long-running dispute with major customer My Chemist/Chemist Warehouse, or MC/CW, regarding their supply deal. We had already outlined our expectation of this scenario playing out in our May 26, 2017, note titled â€œLegal Risk Adds Uncertainty to Commercial Realityâ€. As such, we maintain our AUD 0.95 per share fair value estimate and Accumulate recommendation. Although the share price rallied on this news, it remains approximate...

17/10/2017 13 EN

Underlying

Sigma Healthcare Ltd

Sigma Healthcare is a pharmaceutical wholesale and distribution business in Australia, delivering to pharmacies Australia wide.Co.'s pharmacy-led network includes over 700 retail brand members representing the brands Amcal, Guardian, PharmaSave, Chemist King and Discount Drugstores. Co. also manages and promotes a range of Over the Counter private label products made available to brand member customers, as well as a generic range of private label products under the Pharmacy Care range. In addition, Co., through its subsidiary, Central Healthcare Services, has a presence in the hospital pharmaceutical distribution market.

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AU000000SIG5 Australian Securities Exchange Australia

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Chris Kallos, CFA

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Commercial Settlement Outweighs Managementâ€™s Subtle EBIT Guidance Downwards

Sigma Healthcare Limited: 1 director

SIGMA HEALTHCARE suffers a double requalification, which weighs heavily on its rating, now at Neutral.

Monthly LMI Update Independent Investment Research

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Sasol Provides Full-Year Production Update

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