Via the recent CRA Health acquistion, Volpara Health Technologies has announced its largest contract to date worth over US$400,000 per annum.
The broker adjusts financial model assumptions to better reflect the rising importance of the average revenue per user (ARPU) metric. In FY21 it’s estimated (ex the CRA acquisition) a 27% market share in the US generates an ARPU of US$1.26.
This is represented by 12% under SaaS contracts with an ARPU of US$1.94 and 15% under the capital model, explains the analyst.The Add rating is maintained and the target price is increased to $1.94 from $1.92.
Sector: Health Care Equipment & Services.
Target price is $1.94.Current Price is $1.30. Difference: $0.64 – (brackets indicate current price is over target). If VHT meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).
