Australia's Pro Medicus recoups early losses; Jefferies cuts PT but retains 'hold' rating

Pro Medicus

12/08/2026 03:56

** Shares of Pro Medicus PME.AX edge 0.6% higher after tumbling as much as 1.6% earlier in the session
** Jefferies reiterates "hold", cites a new Idaho contract, likely share gains and a tech-led replacement cycle
** Brokerage, however, cuts its PT by ~4% to A$188.25 as healthcare peer multiples fall, adding that at roughly 100 times forward earnings it wants the stock cheaper
** Says the 7-year, A$23 million ($16.23 million) St Luke's deal should start in 4Q27 and lift earnings per share by 0.3% in FY27 and 0.9% in FY28
** Jefferies says rising scan complexity is creating an accelerating replacement cycle that favours Visage's server-side streaming architecture
** Adds that customer data show "30–50% increased radiologist efficiency" after implementation, alongside faster scan and report turnaround times
** YTD, Pro Medicus stock down 17%

($1 = 1.4170 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))