INVESTORS are increasingly seeing the positive side of the controversial merger between Sigma Heathcare and Chemist Warehouse Group (CWH).
"Sigma stocks have shown extraordinary performance over the past two years, which has left the share price at high multiples to earnings, and analysts are divided on whether it can maintain its current share price," VanEck Deputy Head of Investments & Capital Markets, Jamie Hannah told Pharmacy Daily.
"Overall, we remain positive on Sigma stocks and expect future performance will be in-line with the expected growth forecasts," Hannah said.
Sigma Healthcare yesterday released its financial results for the year ending 31 Jan 2025, which featured strong net revenues muted somewhat by an after-tax loss caused by one-off costs and onboarding expenses relating to its closer association with CWH.
With the merger now complete and bedding down, Sigma CEO VIkesh Ramsunder expressed confidence in the company's financial pulse, with future results to include the performance of merger partner Chemist Warehouse.
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