Revenue growth of 4.2% was recorded in the September quarter and, being lower than the growth in national benefits, Macquarie assesses this reflects a higher relative exposure to Victoria.
Still, the broker continues to believe the business is well-positioned for growth over the longer term as the industry fundamentals are attractive and there will be contributions from internal projects.
Macquarie retains an Outperform rating and increases the target to $5.20 from $4.95.
Sector: Health Care Equipment & Services.
Target price is $5.20.Current Price is $4.06. Difference: $1.14 – (brackets indicate current price is over target). If IDX meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
