Pro Medicus (ASX:PME) share price jumps 7% following broker notes

We scan the reasons for the lift in Pro Medicus shares today…
The post Pro Medicus (ASX:PME) share price jumps 7% following broker notes appeared first on The Motley Fool Australia. –

The Pro Medicus Ltd (ASX: PME) share price surged higher today.

Today’s gain puts the healthcare imaging provider’s share price within reach of its previous all-time high.

Earlier today, Pro Medicus shares reached an intraday high of $57.57. The company’s shares finished the day at $56.87, up 6.9%.

What’s pushing the Pro Medicus share price upwards?

There were no announcements from the company today. However, a couple of snippets of information might have influenced the share price.

Firstly, a broker note out of Morgans reveals its analysts have downgraded their ‘hold’ rating to ‘reduce’. That may not sound positive for the company at first, but the broker did increase its price target from $41.30 to $49.69.

Morgans’ mixed signals are the result of Pro Medicus’ rapid share price appreciation in the last month. Given the lack of news, the broker thinks the upwards move might stem from short positions being covered ahead of the end of the financial year.

For this reason, Mogans sees current prices as unsustainable in the short term.

Another broker’s take

Bell Potter released its latest research on the medical imaging company yesterday. According to the note, the broker retained a ‘hold’ rating with a 12-month Pro Medicus share price target of $49, previously $43.

A general review of outlook for Pro Medicus $PME by @Bell_Potter finds a minimum of $146m in revenues await over next 5-8 years. Upgrades forecasts. Target price lifts to $49 from $42. Hold rating retained considering where share price is #XJO #StocksToWatch #investing #equities

— Rudi Filapek-Vandyck (@Filapek) June 23, 2021

Additionally, Bell Potter estimated the company’s market share in radiology image viewing as somewhere between 3% to 5%. Hence, the future potential for further expansion remains vast in their opinion.

Topping the 200

The impressive share price performance extends beyond today, this week, or even month. As we covered in a separate story, Pro Medicus is one of the best performing shares in the S&P/ASX 200 Index (ASX: XJO) so far in 2021.

A wave of optimism has followed the company winning a few big contracts in the first six months of the year. Between these deals, Pro Medicus added $85 million in contracted revenue over the next 7 to 8 years.

The post Pro Medicus (ASX:PME) share price jumps 7% following broker notes appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pro Medicus right now?

Before you consider Pro Medicus, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pro Medicus wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Top brokers name 3 ASX shares to sell today

Why Afterpay, Core Lithium, De Grey Mining, & Pro Medicus are storming higher

ASX 200 Weekly Wrap: ASX makes it 5 out of 5

These were the best-performing ASX 200 shares last week

Here are the best performing ASX 200 shares so far in 2021

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!