Monash IVF policy dictates patients who have contracted covid must defer treatment for eight weeks. While this policy, along with close contact requirements for staff and patients has negatively impacted trading, Morgans expects lost demand will be picked up in FY23.
Management reiterated the strong industry fundamentals. The broker retains an Add rating and lowers forecasts in-line with the trading update. The target price is reduced to $1.25 from $1.29.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $1.25.Current Price is $1.06. Difference: $0.19 – (brackets indicate current price is over target). If MVF meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).