** 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;))
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