The broker highlights ventilators continue to benefit from covid-19 demand, albeit slowing, driving an around 6% sales uplift and helping to overcome softness in the sleep business and SaaS.
A faster than expected recovery in patient diagnosis, ongoing strong masks resupply, and benign pricing environment, point to solid profitable growth, says the analyst- especially when coupled with pandemic-induced acceleration of macro trends.
Management continues to expect a 'U' shaped recovery through FY21, with covid-19 ventilator demand waning and sleep device headwinds, notes the broker.
Morgans raises FY21-23 earnings estimates and increases the target to
The Add rating is unchanged
Sector: Health Care Equipment & Services.
Target price is
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