Pro Medicus FY26 Result Preview: More contracts or AI monetisation now needed to justify valuation after sharp re-rating; downgrade to Neutral

Research evidence excerpt

Pro Medicus FY26 Result Preview: More contracts or AI monetisation now needed to justify valuation after sharp re-rating; downgrade to Neutral

Chris Cooper, ACA CFA AC Asia Pacific Equity Research

(61 2) 9003-6221 20 July 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 -15.9% 7.4% 28.2% -43.4% open/manipulate complex files near-instantaneously, with

Rel -16.8% 7.9% 30.0% -44.8%

nearly no lag).

Company Data PME has now recovered +80% from the lows (Feb-26), and

Shares O/S (mn) 105 whilst it still sits >40% below the peaks, valuation of 105x NTM

52-week range (A$) 329.66-107.75

Market cap ($ mn) 13,560.82 P/E exceeds 3x EPS growth once more (JPMe EPS CAGR

Exchange rate 1.43 +29%), vs. ASX HC sector on 20x P/E for 11% EPS CAGR

Free float (%) 50.9% (1.8x). We remain clearly positive on the strength of Visage and

3M ADV (mn) 0.36

3M ADV ($ mn) 41.1 the attractiveness of the market, expecting share gains from 10%

Volatility (90 Day) 46 to 25% by FY33e, driving revenue/EPS CAGR of +25%/+29%.

Index ASX 200 As soon as PME can monetise AI (as we expect), it will likely