Pro Medicus Ltd
PME: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$14.00 | Rjtvjh | Fmtgqqw |
Pro Medicus: Clients Continue to Renew at a Higher Price Point
We maintain our AUD 37 fair value estimate for narrow-moat Pro Medicus following a contract renewal with its client, Mercy Health. The renewed contract achieved an increased fee per transaction and factors in higher patient volumes. It has a committed minimum value of AUD 98 million over eight years versus AUD 36 million over seven years previously. Our revenue forecasts increase by an average of 1%, but we maintain our midcycle 73% EBIT margin by fiscal 2034 from 70% in fiscal 2024.