In the wake of first half results, Morgans acknolwedges the performance since commercialisation of ResApp Health's technology has clearly disappointed, with lower than expected usage numbers flowing through the Australian telehealth (TH) partners.

The broker assesses 1H21 results produced expense items in-line with forecasts though the focus continues to remain on burn rate and cash balance. The current cash level is considered to provide three quarters of funding based on the most recent quarterly report.

The integration with large EU TH provider Medgate is nearing finalisation and expected to move into a trial phase shortly. The analyst views the conversion of the trial into a paying client as a significant catalyst for a re-rate.

Speculative Buy rating and the target is lowered to $0.13 from $0.21.

Sector: Health Care Equipment & Services.

Target price is $0.13.Current Price is $0.06. Difference: $0.07 - (brackets indicate current price is over target). If RAP meets the Morgans target it will return approximately 54% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena