IDX – Credit Suisse rates the stock as Neutral

Following FY21 results, Credit Suisse estimates revenue was a -2% miss versus expectations. Overall revenue growth was partly offset by elevated employee, equipment and consumable costs driving an earnings (EBITDA) margin miss of -5%.

This results in downward forecast profit (NPATA) revisions of -6% for FY22 and FY23 by the broker. Management noted FY22 YTD trading is down around -5% versus prior expectations, which includes New Zealand down -75% versus estimates.

While the analyst expects the industry to return to normality from the second half, the company will be more reliant on organic growth, given elevated M&A multiples. The Neutral rating is unchanged and the target price falls to $4.65 from $5.

Sector: Health Care Equipment & Services.

 

Target price is $4.65.Current Price is $4.49. Difference: $0.16 – (brackets indicate current price is over target). If IDX meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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 →