Micro-X has signed its first contract for the Rover worth $1.4m. This was facilitated by the World Health Organisation with units to be sent to a number of Pacific Island nations. The Rover is a more rugged version of the Nano (portable X-ray unit) and designed for extreme operational scenarios, explains Morgans.
Importantly for the broker, the contract win indicates success of the direct marketing strategy enabling the company to retain a higher margin, given there is no distributor.
The analyst assumes 30 Rover units are sold in FY21, which accounts for around 30% of forecast revenue.
Morgans believes the company has reached a clear pivotal point and further sales momentum is likely.
The Speculative Buy and target price of $0.34 are unchanged.
Sector: Health Care Equipment & Services.
Target price is $0.34.Current Price is $0.23. Difference: $0.11 – (brackets indicate current price is over target). If MX1 meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges – negative figures indicate an expected loss).
