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Pro Medicus (ASX:PME) share price hits record high: Is it too late to invest?

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The Pro Medicus Limited (ASX: PME) share price was an exceptionally strong performer on Thursday.

The leading health imaging company’s shares jumped 15% to $36.62.

The Pro Medicus share price has continued this positive form and hit a new record high of $39.62 on Friday.

This latest gain means its shares are up 57% over the last six months.

Why did the Pro Medicus share price jump to a record high?

Investors were fighting to get hold of the company’s shares on Thursday after it announced its fifth major new contract win in the space of six months. And as you might have guessed from the share price reaction, this was a big one.

According to the release, Pro Medicus has signed a seven-year contract worth $40 million with Salt Lake City-based Intermountain Healthcare. It is the largest health system in the State of Utah and also provides medical services in the states of Idaho and Nevada.

The contract, which is based on a transactional licensing model, will see Pro Medicus’ Visage 7 Viewer and Visage 7 Open Archive products implemented across all of Intermountain’s radiology and subspecialty imaging departments. The implementation will be fully deployed on Google Cloud Platform (GCP), leveraging Visage’s native, cloud-engineered enterprise imaging technology.

Pro Medicus’ CEO, Dr Sam Hupert, commented: “This is a very important deal for us, not only because of its size and scope, it will provide us with a material footprint in Intermountain West, previously an untapped region for us.”

Is it too late to invest?

According to analysts at UBS, the Pro Medicus share price may have topped out for the time being.

While the broker was impressed with its contract win and believes it is one of the highest quality companies on the Australian share market, it isn’t enough for it to change it rating.

UBS has retained its neutral rating and $32.00 price target on its shares. This price target is ~19% lower than where it shares trade today.

Elsewhere, Goldman Sachs currently has a neutral rating and a lower price target of $25.90 on its shares.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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