VHT – Morgans rates the stock as Add

The company posted a net loss of NZ$9.6m for FY17, slightly weaker than Morgans expected. As of March 31 the company has signed 14 software-as-a-service contracts.

The total contract value signed in FY17 was NZ$4.1m versus NZ$2.5m in FY16. Morgans adjusts forecasts for accounting changes and rolling forward its model.

The company has recently announced the commercial launch of VolparaEnterprise, an enhanced version of its cloud-based imaging analytics platform which the broker believes will encourage greater adoption by customers.

Add rating maintained. Target is reduced to $0.81 from $0.87.

Sector: Health Care Equipment & Services.

Target price is $0.81.Current Price is $0.35. Difference: $0.46 – (brackets indicate current price is over target). If VHT meets the Morgans target it will return approximately 57% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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