ImpediMed's March Q cashflow results showed net operating outflow was higher than expected but contained one-off severance payments to previous management, Morgans notes.

The installed base growth in the US of 13 units was lower than expected, however the broker is confident the new management team will convert the current pipeline into sales orders over the coming quarters.

Morgans has made a modest downgrade to forecasts. Management has provided cost base guidance for FY25 of -10% to -15% lower than FY24, which the broker expects can be achieved.

Target falls to 20.2c from 20.4c, Speculative Buy retained.

Sector: Health Care Equipment & Services.

Target price is $0.20.Current Price is $0.08. Difference: $0.12 - (brackets indicate current price is over target). If IPD meets the Morgans target it will return approximately 58% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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