The company has upgraded FY18 guidance to net profit growth of around 20% versus prior expectations for "high single digit growth". This has been driven by acceleration in referrals, particularly in Western Australia, and implementation of cost reductions.
Ord Minnett is encouraged by the upgrade but, with the share price currently trading above valuation and broadly in line with the prevailing offer, downgrades to Hold from Buy and raises the target to $2.30 from $1.89.
Sector: Health Care Equipment & Services.
Target price is $2.30.Current Price is $2.31. Difference: ($0.01) – (brackets indicate current price is over target). If IDX meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).