Pro Medicus Ltd (PME.AX): Positioning intact; maintain Buy, but closer to our target price

研报英文原文证据摘录

Pro Medicus Ltd (PME.AX): Positioning intact; maintain Buy, but closer to our target price

Action |

02 Jul 2026 03:14:01 ET │ 13 pages

Pro Medicus Ltd (PME.AX)

Positioning intact; maintain Buy, but closer to our target price

CITI’S TAKE

We continue to believe PME has a moat and that the company’s clients are

Buy “better off with than without” the product, but general attitudes to SaaS

Price (02 Jul 26 16:00) A$205.93 as a whole continue to have a big influence over the shares, which are up

c.28% over the last month. We think investors are willing to lend benefit of Target price A$240.00↓

the doubt as PME continues to discuss its difficult-to-replicate tech and from A$245.00

build a portfolio approach to AI with its own ecosystem at the centre. We Expected share price return 16.5%

adjust our model to shift outward slightly the roll-on of already-won Expected dividend yield 0.4%

business in 2H. With this note we switch to presenting underlying Expected total return 17.0%

earnings to remove one-off items. This produces large apparent changes

Market Cap A$21,513M for FY26, but our underlying mid-term EPS changes in are in the low single

US$15,087M digits. These changes lead to a small drop in our DCF valuation to

AUD240/share and we retain our Buy recommendation albeit with less

upside.

Laura Sutcliffe, Ph.D.AC

Another recent investment in third party AI starts to build a portfolio — Last week, +61-2-8225-2213

PME announced that it will invest up to AUD20m in Australia-listed EchoIQ via laura.sutcliffe@citi.com

convertible notes. We have not yet seen final details of the deal but the first AUD10m

Abhishek Jainwould be associated with PME becoming a reseller of EIQ’s existing product for

evaluating the possibility of aortic stenosis, EchoSolv AS.