UBS reviews volume trends for the Australian IVF market and the implications. Data is positive for Virtus Health and the broker updates growth assumptions. Earnings estimates are upgraded by 1-11% across FY19-21.
Target lifts to $5.40 from $4.40 and the rating is upgraded to Buy from Neutral. The domestic outlook is the key driver for the business, while organic earnings growth is likely to remain challenging in the international division, in the broker’s view.
Sector: Health Care Equipment & Services.
Target price is $5.40.Current Price is $5.07. Difference: $0.33 – (brackets indicate current price is over target). If VRT meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
