Australia's Integral Diagnostics presents 'compelling' value - Ord Minnett

Integral Diagnostics

01/06/2023 04:54

** Aussie wealth management firm Ord Minnett initiates
coverage on Integral Diagnostics Ltd  IDX.AX  with a A$3.50
price target and "accumulate" rating
    ** Brokerage says IDX, which holds around 7% of Australian
market share, has a compelling strategic value
    ** Ord Minnett's "accumulate" rating means brokerage expects
a total return of between 5% and 15% on holdings
    ** Brokerage says diagnostic imaging (DI) sector's growth is
accelerating on the back of post-pandemic volumes recovery
    ** Forecasts Australian (DI) revenue growth of more than 10%
in FY24
    ** Expects mergers and acquisitions/consolidation across the
sector
    ** Forecasts margins to recover around 21.5% in FY24 and
around 22.5% in FY25
    ** Nine of 17 analysts rate the stock "buy" or higher, seven
"hold" and one "sell"; their median PT is A$3.14 – Refinitiv
data
    ** IDX stock up 14% this year, as of last close, vs a
marginal 0.7% increase in the ASX All Ordinaries index  .AORD 

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))