National brokerages Morningstar and Jefferies have elevated their estimates for Pro Medicus (ASX:PME), specifically highlighting the largest ever contract scored by the healthcare informatics company.
Pro Medicus of Australia entered into a A$140 million ($89.54 million) agreement on Tuesday for providing its Visage 7 cloud-based diagnostic imaging platform to U.S.
not-for-profit organization Baylor Scott & White Health.
Morningstar upgraded their fair value estimate for Pro Medicus (ASX:PME) by 8% to A$33.50, predicting a midcycle EBIT margin of 71% by fiscal 2033.
Meanwhile, Jefferies elevated their price target to A$82 from A$71, equating to an expectation for increased revenue from 2-6% in future years as a result of growth in the cardiology business segment.
Current stock ratings from twelve analysts include two ‘buy’, eight ‘hold’, and two ‘sell’ or lower, putting the median price target at A$73.60, according to LSEG data.
As of the most recent closing, Pro Medicus (ASX:PME) has seen an increase of 44.8% YTD.
Pro Medicus is a healthcare informatics firm that provides hospitals and imaging centers with advanced visualization capabilities.