In the second new contract win so far in FY22, Pro Medicus announced a $32m, eight year ($4m/yr) contract for the Visage radiology software in the US.
While the win is a positive, the analyst points out new contract wins are expected by the market, and another $10m/yr in new contracts is required within three months to meet Citi’s FY22 forecast.
The Neutral rating is maintained, as the broker feels the current company valuation is elevated. The target of $46 is maintained.
Sector: Health Care Equipment & Services.
Target price is $46.00.Current Price is $47.50. Difference: ($1.50) – (brackets indicate current price is over target). If PME meets the Citi target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
