IDX – Morgan Stanley rates the stock as Equal-weight

The company has completed the acquisition of Imaging Queensland for consideration up front of $104m. Morgan Stanley already includes the associated capital raising in forecasts and now includes the earnings associated with the acquisition.

Target is raised to $3.40 from $3.12. Equal-weight rating maintained as the PE multiple looks full.  Industry view: In-Line.

The broker suspects the market will continue to pay a premium for the stock given the upside risk associated with reduced balance sheet leverage and a track record of accretive acquisitions.

Sector: Health Care Equipment & Services.

Target price is $3.40.Current Price is $3.60. Difference: ($0.20) – (brackets indicate current price is over target). If IDX meets the Morgan Stanley target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →