Sigma Healthcare's New Bull Expects Profit Margins to Widen -- Market Talk
Dow Jones03-20 06:06
2206 GMT - Sigma Healthcare's share price recently dropped to a more than one-year low, leading Jefferies to turn bullish on the pharmacy owner's stock. Analyst David Stanton says Sigma is a high-quality retail franchise. "We expect growth to continue, notwithstanding moderating impact from GLP-1 sales in 2H FY26," Jefferies says. It expects Sigma's profit margins to expand more. That's due to increased volumes off a fixed-cost base and ongoing growth in higher-margin generic drugs. Jefferies also expects Sigma to make improvements in its wholesaling business. It upgrades Sigma to buy, from hold. Sigma ended Thursday at A$2.66, below Jefferies's A$3.05/share price target. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
March 19, 2026 18:06 ET (22:06 GMT)
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