UBS delves into the financial implications of the company’s recent software-as-a-service/connected care acquisitions and joint ventures.
While the broker believes there is opportunity for robust growth in revenue, the path to profitability and improved returns is more difficult to ascertain.
This is primarily because of limited company disclosure and publicly available information regarding the revenue models of the connected care businesses, and the extent of operating costs or investment that are still required to achieve scale.
Still, the broker considers diversification into new revenue streams holds strategic merit. Neutral rating maintained. Target is reduced to US$109 from US$115.
Sector: Health Care Equipment & Services.
Current Price is $14.49. Target price not assessed.
