Morgans upgrades the rating to Add from Hold as industry participants have noted a swift recovery for the first quarter FY21. Positive momentum is considered to be building within the company and industry.
The broker finds Medicare data supports this conclusion and growth is now expected to continue, before a more normal activity period in the second half.
Following modelling adjustments to reflect more normal conditions in FY22, Morgans increases the valuation and price to $5.82 from $5.31. There are no changes to underlying forecasts.
Sector: Health Care Equipment & Services.
Target price is $5.82. Current Price is $5.72. Difference: $0.10 – (brackets indicate current price is over target). If VRT meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
