Morgans decreases the rating to Reduce from Hold after the share price has risen by over 35% in the last month to record highs. In the absence of news, it’s felt this may be due to unwinding of short positions in the stock, (down to circa 3.5% from over 5% in January).
While the broker increases the target price to $49.69 from $41.30, current prices are considered unsustainable in the short term. The analyst suggests trimming heavily overweight positions and looking for a better entry point (below $45.00) into this quality name.
Morgans makes no changes to forecasts. The company will post its full year FY21 result in mid-August.
Sector: Health Care Equipment & Services.
Target price is $49.69.Current Price is $53.20. Difference: ($3.51) – (brackets indicate current price is over target). If PME meets the Morgans target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
