** Citi resumes coverage on medical imaging services provider Integral Diagnostics post its merger with local contender Capitol Health with "neutral" rating at a price target of A$3 per share

** Brokerage sees the merger to maintain IDX's earnings per share stability and potential uplift from the disclosed $10 mln in net synergies

** Adds that despite enduring demand for radiology, the firm has reported its profit margins to contract due to wage inflation and muted volume growth

** Citi sees organic revenue growth of +7.5% for FY25 and +6.5% per annum thereafter, expecting a 400 basis point EBITDA margin expansion by FY28, implying a 33% EPS compound annual growth rate between FY24 and FY27

** 11 of 12 analysts rate the stock "buy" or higher, one "hold"; their median PT is A$3.34 – LSEG data

** IDX stock up around 57.5% YTD as of last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com;))