The Pro Medicus Limited (ASX: PME) share price has been one of the best performers on the ASX this year. And today it could be even better as it edges towards a record high.
So far, the health imaging technology company’s shares are up almost 70% year-to-date and 120% in the past 12 months.
We take a closer look at what could push Pro Medicus shares to an all-time high this morning.
Pro Medicus share price on the move
Investors remain confident in the Pro Medicus share price as the company continues to impress the market.
During mid-May, Pro Medicus signed an 8-year contract to licence its Visage 7 Enterprise imaging platform to The University of Vermont Health Network Inc. This $14 million deal further cemented the company’s growth opportunities across the healthcare market in North America and other regions.
Pro Medicus stated it’s won seven contracts in a row, building on its client base and revenue streams.
In addition, the company also recently partnered with healthcare giant Mayo Clinic in a multi-year research agreement announced earlier this month. The framework is aimed at developing and commercialising artificial intelligence, leveraging Pro Medicus’ Visage AI Accelerator platform.
The company believes the use of artificial intelligence will play an important role in the healthcare sector in the future. Its latest research collaboration is an integral part of the company’s AI strategy in meeting clinical goals with better patient outcomes.
Over the past week, two brokers rated Pro Medicus shares with similar price points.
The first, Bell Porter, lifted its 12-month price target by 14% to $49.00. The investment firm views Pro Medicus in a positive light but put it on a hold rating due to its current valuation.
Australian investment house Morgans followed suit, raising its price by 20% to $49.69. However, it downgraded its rating from hold to reduce. This could be because the current Pro Medicus share price is almost 20% higher than its recommendation.
Based on valuation metrics, the company commands a market capitalisation of roughly $6 billion, with more than 104 million shares outstanding.