ImpediMed's 1Q cashflow report was broadly in line with Morgans forecasts. 

The broker lowers revenue forecasts across FY24-26 and extends the cash flow breakeven point out to FY26 as changes in the Blue Cross Blue Shield (BCBS) association have impacted private coverage expectations.

Management's strategy is to get private payor reimbursement in the US and has now lowered its expectations on private payors updating their medical policies to 30% coverage by the end of 2023 from 50%. By the end of FY24: Around 85%, down from over 95%.

The Speculative Buy rating is unchanged and the target falls to 22c from 24c.

Sector: Health Care Equipment & Services.

Target price is $0.24.Current Price is $0.12. Difference: $0.13 - (brackets indicate current price is over target). If IPD meets the Morgans target it will return approximately 52% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena