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Highlights
Stock Decline: Pro Medicus has fallen 30% from its record high, including an 8% drop after earnings forecasts were revised.
Analyst Optimism: Despite forecast adjustments, Bell Potter remains confident in the company’s long-term prospects.
Buy Rating Maintained: The firm sets a revised price target of AU$280, implying a potential 33% upside.
Shares of Pro Medicus Limited (ASX:PME) took a sharp hit on Wednesday, tumbling nearly 8% after analysts revised their near-term earnings estimates. The latest dip means the ASX 200-listed health imaging technology company has now dropped 30% from its peak, raising questions about whether this presents a buying opportunity.
Earnings Forecast Adjustments
According to a note from Bell Potter, the recent earnings revisions stem from an assessment of new contract installations. Since May 2024, Pro Medicus has secured 11 new deals, including its largest-ever contract in the U.S. with Trinity Healthcare.
While revenue from this major contract is set to begin in the first half of FY26, full earnings impact won’t be realised until the latter half of FY27 due to the phased installation process. The high volume of new contracts increases the likelihood of short-term volatility, but analysts emphasise that long-term growth remains intact.
Competitive Edge Remains Intact
Despite recent share price fluctuations, Bell Potter remains bullish on Pro Medicus, highlighting the company's industry-leading imaging technology. The Visage platform’s download speed and native 3D imaging continue to set it apart from competitors like Sectra and Intelerad.
Analysts believe the company’s dominance in streaming capabilities ensures a significant competitive advantage. They also note that, despite years of attempts, rivals have yet to match Pro Medicus’ technology.
Investment Outlook
Bell Potter has reaffirmed its "buy" rating on Pro Medicus, though it has reduced its price target from AU$330 to AU$280. This still suggests a potential upside of 33% from its current levels over the next 12 months.






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