Morgan Stanley observes the economics for Pacific Smiles are improving, with break-even being achieved in nine months in some centres compared with the previous target of 12 months.
The company expects 20-25 new centres in FY22 and the broker believes the acceleration in the roll-out and the backing of private health insurers makes this a unique asset in the Australian market.
Overweight retained. Target is $3.20. Industry view: In-line.
Sector: Health Care Equipment & Services.
Target price is $3.20.Current Price is $2.50. Difference: $0.70 – (brackets indicate current price is over target). If PSQ meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
