Latest data from Medicare has total cycles in April down -5% on the previous comparable period, and Macquarie has recently downgraded its second half forecast for Monash IVF, noting the company’s overweight Melbourne exposure impacted on market share in the period given elective surgery halts in the state.
The broker does, however, feel the company is well placed to gain market share moving forwards, and to benefit from addressing pent up demand into FY23.
The Outperform rating and target price of $1.20 are retained.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $1.20.Current Price is $1.06. Difference: $0.14 – (brackets indicate current price is over target). If MVF meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).