Analysts see Integral Diagnostics earnings boost from Horizon Radiology buy

Integral Diagnostics

19/05/2022 05:54

(Adds comments from Morgan Stanley, stock move)
    ** Analysts see Integral Diagnostics'  IDX.AX  acquisition
of Horizon Radiology in New Zealand for NZ$30.3 million ($19.20
million) as adding to its earnings per share 
    ** Brokerage Citi forecasts a ~2% accretion to EPS in
FY23-24, Morgan Stanley forecasts ~3% in FY23 
    ** Both brokerages say the acquisition is in line with IDX's
strategy
    ** Citi raises stock PT to A$4.80 from A$4.70, maintains
"buy" rating; Morgan Stanley leaves A$4.36 PT and "equal-weight"
rating unchanged 
    ** Morgan Stanley says the deal would potentially generate
FY22 pro forma (ex COVID and flood impacts) EBITDA of A$3.2
million to A$3.6 million, ~4% higher than co's current FY22
expectations
    ** Citi says the acquisition will complement IDX's presence
in Auckland
    ** Citi expects IDX's business will be heavily affected by
Omicron in 2H22, but says the market should look through it in
FY22
    ** Nine of 13 analysts rate the stock "buy" or higher, four
"hold"; their median PT is A$4.69– Refinitiv Eikon data 
    ** Stock trading 2.2% higher at A$3.76; down 24.6% this
year, as of last close 
    



($1 = 1.5780 New Zealand dollars)

 (Reporting by Navya Mittal and Harshita Swaminathan in
Bengaluru)
 ((Navya.Mittal@thomsonreuters.com;))