Following ImpediMed's 2Q cash flow report, Morgans lowers its FY23 revenue forecast to reflect a slower than expected ramp of SOZO placements. As a result the forecast net loss widens to -$17.2m from -$15.1m. FY24/25 forecasts are unchanged.

The broker awaits the release of the National Comprehensive Cancer Network (NCCN) Survivorship Panel decision in two months time. It's hoped a wording change will provide a boost for ImpediMed if its device is mentioned as an objective measurement for lymphoedema.

The Speculative Buy rating is unchanged, while the target falls to 18c from 19.5c.

Sector: Health Care Equipment & Services.

Target price is $0.18.Current Price is $0.07. Difference: $0.11 - (brackets indicate current price is over target). If IPD meets the Morgans target it will return approximately 62% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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