Jefferies sees Monash IVF's ART acquisition as chance to build market share, hikes PT

Monash IVF

03/07/2022 23:04

** Brokerage Jefferies raises PT on Australia's assisted
reproductive services provider Monash IVF  MVF.AX  to A$1.35
from A$1.30, maintains "buy" rating
    ** Company announces acquisition of fertility services
provider ART Associates Queensland for initial cash
consideration of A$3.9 mln ($2.66 mln)  urn:newsml:reuters.com:*:nASX8h350N
    ** Brokerage sees the acquisition as an opportunity for MVF
to build share in the Queensland market over medium-term through
increasing volume of procedures
    ** With six fertility specialists, ART will add around 60
basis points to MVF's Australian IVF market share - Jefferies
    ** Brokerage worries about potentially lower levels of
discretionary spend in Australia leading to lower volumes of IVF
in the medium-term, but believes this will be partly offset by
ART acquisition
    ** All five analysts covering the stock rate it "buy" or
higher; their median PT is A$1.26 - Refinitiv data
    ** As of last close, stock down 8.1% this year


($1 = 1.4689 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Paul
Simao)
 ((Himanshi.Akhand@thomsonreuters.com;))