JP Morgan rates as Overweight (1) - Sonic's plan to take over some Healthscope ((HSP)) assets has received a further setback from the ACCC. According to the broker the regulator may block the purchase of Queensland assets while accepting the purchase of WA assets. Sonic has already voluntarily walked away from NSW. The broker considers Sonic may appeal the decision or offer some concessions to salvage Qld. The broker believes upside still exists as Sonic captures some Qld business and a profitable, if small, WA business. It has retained its Overweight recommendation and set a price target of $14.40 from $14.44. More
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