The Sonic Healthcare Ltd (ASX: SHL) share price has fallen by more than 18% since 19 August 2026, which is a hefty drop for an ASX healthcare share in a short time. When businesses fall that much, it’s worthwhile considering an investment.

Sonic Healthcare is a global pathology business with a presence across a number of countries, including Australia, Germany, the US, the UK, Switzerland, and New Zealand.

Let’s take a look at whether this is a good time to buy or not.

Defensive earnings

There’s a lot of uncertainty for the global economy at the moment, with rising interest rates, stronger inflation, AI uncertainties, and so on.

Healthcare is one of those industries, in my view, that have defensive earnings. We don’t choose when to get sick, so there’s fairly consistent demand year to year. Most people also place their health as a high priority compared to many other spending categories.

But higher interest rates are a headwind for most share prices, including defensive names. Still, I believe Sonic Healthcare’s financials can continue growing.

In FY26, revenue rose 13% to $10.9 billion, underlying operating profit (EBITDA) grew 11% to $1.9 billion, operating profit (EBITDA) rose 9% to $1.88 billion, underlying net profit rose 17% to $621 million, and statutory net profit grew 18% to $608 million.

Statutory earnings per share (EPS) grew 15% to $1.23.

Assuming the same exchange rate as FY26, EBITDA is predicted to grow to between $1.95 billion and $2.03 billion, excluding back office IT systems transformation costs of around A$30 million.

In the longer term, according to CommSec, analysts think earnings in FY28 and FY29 could grow.

With a mixture of organic growth (from tailwinds like an ageing population) and the occasional bolt-on acquisition, the future looks promising for profit growth.

The dividend yield

Sonic Healthcare has an impressive history of dividends. There have only been a couple of times over the last 35 years when the business didn’t increase its payout (it was maintained instead), and I expect that to continue in the years ahead.

The FY26 annual dividend was increased by 0.9% to $1.08. Future earnings growth is expected to support achieving of the target dividend payout ratio of between 70% to 80% of net profit.

The FY26 payout translates into a 7.2% dividend yield, including franking credits, at the time of writing. That’s a very attractive yield, in my view.

Is the Sonic Healthcare share price cheap?

At the time of writing, the Sonic Healthcare share price is trading on a price-earnings (P/E) ratio of less than 16.

I think this is a great time to invest in the business, as I don’t expect the outlook to remain as uncertain forever. Therefore, a temporary sell-off could be a long-term opportunity. Even if the P/E ratio doesn’t increase, future earnings growth (and large dividends) can help drive shareholder returns.

The post Down more than 18% in a month with a 7% yield, are Sonic Healthcare shares too cheap to ignore? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Ingenia Communities Ltd (ASX: INA) share price is in focus after the company rejected a revised takeover proposal, stating it undervalues the business. Warburg Pincus increased its non-binding indicative offer to $5.05 cash per stapled security, up from $4.75, but Ingenia’s board concluded the proposal is not in the best interests of its securityholders.

What did Ingenia Communities report?

• Received a revised, non-binding indicative takeover offer at $5.05 per stapled security
• Offer followed a prior bid at $4.75 per security
• Ingenia Board, supported by independent financial and legal advice, rejected the new proposal
• The proposal was conditional on due diligence and regulatory approvals
• Ingenia’s market capitalisation stands at approximately $1.7 billion

What else do investors need to know?

Ingenia’s board engaged financial adviser Greenhill, a Mizuho affiliate, and external legal counsel, showing its commitment to a careful and thorough assessment of offers. The board remains open to alternative proposals that offer compelling value and serve the best interests of securityholders.

The company continues to focus on delivering its strategic plan. Securityholders are advised that no action is required regarding the revised offer and Ingenia remains committed to growth through acquisition and development.

What’s next for Ingenia Communities?

Ingenia will keep executing its current strategy, which aims to deliver long-term value for securityholders. The board indicated confidence in the company’s direction and growth path, and will continue to consider any future proposals that adequately reflect Ingenia’s value.

The company operates 96 communities and has a strong platform for ongoing expansion, focused on Australia’s growing seniors’ market.

Ingenia Communities share price snapshot

Over the past 12 months, Ingenia shares have declined 22%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Ingenia Communities rejects revised $5.05 takeover offer appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

CSL Ltd (ASX: CSL) shares have clawed back serious ground in recent months, climbing 10% over the past month and 29% over the past six months. Even so, the ASX biotech stock remains 12% below where it stood a year ago.

The next test looms larger, though: the psychological $200 barrier. Clearing it won’t be a gimme. The $85 billion healthcare giant still has to prove it can deliver on several fronts before that milestone becomes more than just a broker’s spreadsheet fantasy.

The good news? CSL has actually laid out the roadmap. Now it just has to walk it.

The Behring problem, and the Behring fix

Everything starts with CSL Behring, by far the group’s biggest business and the one that’s caused the most headaches. After a rough patch, management is now promising a return to mid-single-digit revenue growth in FY27, with immunoglobulin sales expected to climb at a mid-to-high single-digit clip.

That’s not just corporate optimism. Demand for immunoglobulin remains genuinely strong, and CSL is squeezing more out of its plasma collection and manufacturing process at the same time. If Behring turns the corner, it drags the whole group with it.

New kids on the block

CSL isn’t relying on Behring alone. ANDEMBRY and HEMGENIX both posted strong uptake in FY26, and management expects that momentum to keep building.

If these newer therapies can scale into genuine earnings contributors, they give CSL something it’s lacked for a while: a growth story that doesn’t depend entirely on plasma.

Cost-cutting isn’t just noise

CSL’s transformation program has actual receipts. The company banked around US$176 million in cost savings during FY26 – ahead of schedule – with more coming in FY27. Roughly half of those incremental savings are being ploughed straight back into growth initiatives.

If revenue growth and cost discipline both fire at once, that’s a genuine earnings tailwind, not just a management slide deck promise.

The part nobody wants to talk about

Here’s the catch. CSL expects Vifor revenue to fall roughly 25% in FY27, hammered by generic competition in iron products. Seqirus, meanwhile, is only expected to scrape out low-single-digit growth.

Translation: Behring and the new therapies need to do the heavy lifting almost entirely on their own, while the rest of the portfolio does its best impression of dead weight.

Brokers are starting to bite

That improving – if uneven – outlook is enough to get some brokers genuinely excited. In September, RBC Capital Markets upgraded CSL to outperform and hiked its price target from $148 all the way to $213. That points to a 21% upside at the current share price level.

RBC’s bullish call rests on a simple bet: that Behring’s recovery can outrun the drag from Vifor and Seqirus, and earnings growth returns from here.

Barrenjoey followed with an upgrade to overweight and a $180 target.

Not everyone’s convinced. Citi is stuck at hold with a $160 target, while UBS sits at buy with $181.

Foolish takeaway

The path to $200 isn’t a straight line. It’s a bet that demand for immunoglobulins stays strong, new therapies scale quickly, cost savings keep flowing, and the weak links stop bleeding.

Leadership uncertainty adds another variable to the $200 case. In a notice of annual general meeting lodged with the ASX last week, CSL chair Brian McNamee said the search for a new Chief Executive Officer was well-advanced, though still ongoing.

Investors will want clarity on who’s steering the recovery before fully buying into it.

That’s a lot of boxes to tick. But if CSL ticks them, $200 starts looking like the obvious next stop.

The post Why brokers think CSL shares could be on track for $200 appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.