Medicare benefits data highlighted weaker trends for Jan-Feb 2022 with modest recovery in March, Macquarie notes. For the March quarter, combined benefits in key states for Integral Diagnostics fell -9% quarter on quarter and -6% year on year.
Commentary from peers has highlighted operational challenges and elevated costs associated with covid in early 2022, and in addition, the broker sees supply chain constraints as presenting potential upside risk for consumables/equipment expenses in the near-term.
Downgrade to Neutral from Outperform, target falls to $4.15 from $4.30.
Sector: Health Care Equipment & Services.
Target price is $4.15.Current Price is $3.92. Difference: $0.23 – (brackets indicate current price is over target). If IDX meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
