Morgan Stanley cuts rating, PT on Australia's Integral Diagnostics

Integral Diagnostics

10/01/2024 04:06

** Analysts at Morgan Stanley downgrade Integral Diagnostics
 IDX.AX  to 'underweight' from 'overweight'; slash PT to A$1.70
from A$1.95
    ** Shares down as much as 1.3% at A$1.86
    ** Brokerage says downgrade due to relative uncertain
margins outlook as highlighted in co's recent trading update,
which flagged adverse impact to Q1 FY24 operating profit
    ** Adds, discount to long-term price-to-earnings average is
warranted due to uncertain outlook
    ** Says higher capex spend in absence of M&A opportunities
and regulatory headwinds to MRI could make it difficult to
project trajectory of assumed margin recovery
    ** Eight analysts rate the stock "buy" or higher, six "hold"
and one "sell" or lower; their median PT is A$2.44 – LSEG data
    ** Stock had fallen ~34.8% in 2023

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))