By Nicola Blackburn
Wilson Asset Management has said weakness in Pro Medicus’ share price is due to analysts underscoring the impact of new contract wins on the company’s future revenue.
The stock fell 3 per cent on Thursday. That was despite posting a 42.7 per cent jump in half-year profit and announcing it had renewed and won several key contracts.
Senior investment analyst Sam Koch said the fall reflected “a slight miss to lofty market expectations”.
“After a record period of new contract wins, analysts have simply miscalculated the phasing of when new contracts convert to revenue,” he said. “When you step back, Pro Medicus just delivered a stellar result. Recent contract wins suggest a clear acceleration.”
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