Citi cuts EPS outlook on Australis's Integral Diagnostics

Integral Diagnostics

24/10/2022 19:00

** Citi views Australia's Integral Diagnostics'  IDX.AX 
termination of Exact Radiology acquisition to be well received
by investors as it will allow co's management to focus on base
business which has not yet fully recovered from covid
    ** Brokerage flags the fact that medical imaging services
firm did not provide FY23 guidance but said margins would be
flat on FY22; maintains 'Buy' rating
    ** Citi cuts FY22-25 EPS outlook in the range of 17%-20%
    ** Citi expects co's AGM update to be 'incrementally'
positive due to the declining number of covid cases
    ** Brokerage removes the acquisition from its forecasts and
assumes slower pace of margin recovery and increase cost of debt
assumptions
    ** Says that it expects the industry and margins to recover;
adds recent acquisitions of Peloton Radiology and Horizon
Radiology to improve sentiment for co
    ** Seven of 14 analysts rate the stock "buy" or higher, six
"hold" and one "sell"; their median PT is A$3.24 – Refinitiv
    ** Stock has fallen 46.7% this year, as of last close
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))