Pro Medicus posted a first half profit in line with the broker, the highlight being a 30% increase in transaction volumes. The company has noted continued strength in its pipeline of new contracts, together with existing customers increasing their transaction volumes.

The broker has nonetheless trimmed its FY22 market share assumption, leading to a target cut to $32.47 from $32.79. Despite a seemingly lofty PE, the broker believes Pro Medicus can grow into its multiple over time. Add retained.

Sector: Health Care Equipment & Services.

Target price is $32.47.Current Price is $26.42. Difference: $6.05 - (brackets indicate current price is over target). If PME meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena