Recent Medicare data suggests IVF cycle numbers remain solid and Morgans reviews FY16 forecasts, tightening margins slightly to reflect a traditionally weaker period and modestly higher depreciation charges.
FY17 and FY18 estimate are revised down by 1.6% and 0.7% respectively. Morgans retains a Hold rating and raises the target to $6.87 from $6.67.
Sector: Health Care Equipment & Services.
Target price is $6.87.Current Price is $7.19. Difference: ($0.32) – (brackets indicate current price is over target). If VRT meets the Morgans target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).