Shares of the ASX-listed Pro Medicus Limited (AU:PME) extended their rally today, driven by the company’s upbeat outlook for FY25. In its AGM (annual general meeting) presentation for FY24, the company stated that it expects to deliver another year of robust performance in FY25. Following the update, PME shares rose over 2.6% today. Year-to-date, the stock has skyrocketed by 136%, reflecting strong investor confidence amid its ongoing upward momentum.
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Pro Medicus provides medical imaging IT solutions to healthcare groups and hospitals.
Pro Medicus Posts Solid Growth in FY24
In FY24, Pre Medicus achieved solid growth, with revenue climbing 29.3% to $161.5 million. Meanwhile, its net profit after tax increased 36.5% to $82.8 million.
During the year, the company gained nine new contracts in North America, including its largest deal with Baylor Scott & White, which became fully operational by mid-September. Additionally, it secured two major client renewals at higher fee levels—one in North America and one in Australia.
Pro Medicus Expects Another Stellar Year in FY25
Moving ahead in FY25, Pro Medicus remains confident about delivering another year of stellar results. The company stated that the results so far in FY25 have exceeded its budget expectations despite currency fluctuations.
The company further highlighted the vast total addressable market (TAM) in the U.S., where 650 million exams are conducted annually, growing 2% to 3% per annum. It emphasizes that Pro Medicus’ top-tier Visage platform can cater to 100% of this TAM from a product standpoint and 85% from a commercial perspective.
What Is the Forecast for Pro Medicus?
According to TipRanks’ rating consensus, PME stock has a Moderate Buy rating based on two Buy and two Hold recommendations. The Pro Medicus share price target is AU$178.34, which is 22% below the current price level.