Shares of Pro Medicus Ltd (PME.AU), an Australian health imaging firm, plummeted 5.02% in Thursday's intraday trading session following Jefferies' downward revision of the company's near-term growth forecasts. The adjustment comes as a result of reassessing the impact of the Trinity contract and cardiology contribution estimates.
Jefferies has trimmed Pro Medicus' cardiology contribution estimates, leading to a reduced implied market share increase projection. The brokerage now forecasts a 14% market share in FY26, down from the previous estimate of 15%. This adjustment takes into account the stepped minimum nature of the Trinity contract, suggesting a more gradual growth trajectory than previously anticipated.
Despite the lowered near-term growth expectations, Jefferies maintains its A$250 price target for Pro Medicus and keeps its 'Hold' rating unchanged. This indicates that while short-term prospects may have dimmed slightly, the long-term outlook for the company remains stable in the eyes of the brokerage. It's worth noting that Pro Medicus' stock has already experienced a 9% decline year-to-date, and today's sharp drop further adds to the pressure on the company's market value.
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