Pro Medicus New contract underwrites a third of new business growth in FY28; reiterate Overweight

Research evidence excerpt

Pro Medicus New contract underwrites a third of new business growth in FY28; reiterate Overweight

Chris Cooper, ACA CFA AC Asia Pacific Equity Research

(61 2) 9003-6221 18 May 2026 J P M O R G A N

chris.cooper@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

PME develops and commercialises Visage 7, a leading medical

imaging PACS, which sits at the intersection of a number of

confluent tailwinds in global radiology. Demand growth for

medical imaging far exceeds that of radiologist supply and this

is well set to continue. Meanwhile, relentless hardware

innovation is (still) driving further improvements in image

quality, treatment outcomes and affordability. As the imaging

mix continues to shift towards more advanced modalities, the

competitive advantage of Visage widens (fully cloud-native

YTD 1m 3m 12m server-side rendering and streaming allows a radiologist to

Abs -44.7% -11.1% 3.3% -55.0% open/manipulate complex files near-instantaneously, with

Rel -43.7% -7.3% 6.5% -59.0%

nearly no lag).

Company Data We acknowledge that 70x P/E is not ‘cheap’ but a 28% EPS

Shares O/S (mn) 105 CAGR and >50% ROIC are also rare propositions, and a PEG of

52-week range (A$) 336.00-107.75

Market cap ($ mn) 9,131.42 2.6x is significantly less uncomfortable than the 7.0x level from

Exchange rate 1.40 July 2025. Clearly a 65% de-rating in nine months prices in a

Free float (%) 50.9% strongly net bearish interpretation of the prospect of AI

3M ADV (mn) 0.51

3M ADV ($ mn) 46.7 disruption, which is very far from established (the market

Volatility (90 Day) 76 appears to be fully pricing in potential downside risks without

Index ASX 200 credit for potential upside risks, which are actually far more

BBG ANR (Buy | Hold | Sell) 12|2|0

assured).