Last month I wrote about Pro Medicus Ltd (ASX: PME) as an undervalued growth stock.
Pro Medicus provides radiology information technology software and services to hospitals, imaging centres and health care groups.
The company operates in Melbourne, Australia (headquarters), San Diego, USA (North American operations), and Berlin, Germany (European operations), serving clients across Australia, North America, and Europe.
It would seem investors saw value in the stock that fell significantly from February to April on the back of the announcement of US tariffs on most goods from most countries.
However in the last month, Pro Medicus shares have risen 34.09% (at the time of writing).
Image source: Getty Images
How much would a $10,000 investment one month ago be worth now?
Investors that were able to time the dip and buy shares in Pro Medicus shares a month ago would be sitting pretty today.
Based on the share price on April 7 of $176.88 and today's opening price of $237.17, a $10,000 investment would now be worth approximately 13,405.34.
It seems the share price is catching up to fair value quickly, as the company saw its share price fall in March despite key long term contracts, and a strong financial performance.
In fact, it has an underlying EBIT margin of 72%. Additionally, the business is debt-free, so its cash balance is adding to profit with the interest income.
How high can the Pro Medicus share price go?
Naturally, some investors may feel they are too late to the party on PME shares.
However, brokers are tipping there is still room for growth.
The current share price of $237.17 is still significantly below the all time high of nearly $300 a share it hit back in mid-February.
At the end of April, Goldman Sachs put a buy rating and $309.00 price target on its shares. This indicates a 30.25% upside.
Furthermore, if someone with an original investment of $10,000 back on April 7 held and the Pro Medicus share price reached the target price of $309.00, the original investment would reach approximately $17,471.86.
Elsewhere, Bell Potter has a price target of $280.00 and Trading View has a 12 month price target of $263.31.
