Even though the August profit release may cause some price weakness, Morgans prefers to get in early with a upgrade to Add, given the share price is -10% below the broker’s target price of $6.92. The post-result weakness may arise from limited hospital access in the last few months.
Nanosonics has a technology platform that is highly regarded and Trophon 2, the current product offering, is soon to be expanded with the release of a new technology platform. The timing of the release remains uncertain.
Morgans believes high level disinfection will continue to be a long-term thematic.
Rating is upgraded to Add from Hold. The target price is $6.92.
Sector: Health Care Equipment & Services.
Target price is $6.92.Current Price is $6.39. Difference: $0.53 – (brackets indicate current price is over target). If NAN meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
