Pro Medicus Ltd (ASX: PME) shares have bounced around in the last 12 months. Despite the turbulence, the share price is currently up more than 50% in that span.
It firmly sits inside the top 50 companies listed on the ASX in terms of market cap.
For context the S&P/ASX 50 (ASX:XFL) index is up just 5% in the last year.
Pro Medicus shares closed trading on Tuesday at $287.01.
On Monday, the team at Morgans provided fresh analysis on the company and increased its price target. But how does it compare to other brokers?
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Sifting through the volatility
Morgans reinforced that the Pro Medicus share price has bounced around since the initial positive reaction on the release of its FY25 result.
However the broker said it failed to find new and material information to warrant upgrades. Based on this, the broker has maintained its TRIM call.
PME continues to trade on elevated multiples, even at our target price with FY26F PE of ~200x, EV/EBITDA ~130x, and PEG ratio of 5x.
The broker said while these metrics reflect the company's exceptional quality and growth profile, they also imply limited valuation support in the absence of new large contract announcements which is an opaque and often protracted process.
At current levels, the risk-reward profile justifies a more balanced stance.
Updated price target for PME shares
Following a model roll forward, the valuation from Morgans increased marginally to A$290 (from A$285).
Morgans also upgraded its recommendation to HOLD (from TRIM).
The share price has now retraced to neutral territory versus our target price. This move is entirely valuation-driven, with no changes to our forecasts or model assumptions.
Based on yesterday's closing price of roughly $287, it seems Morgans views Pro Medicus shares as trading close to fair value.
Elsewhere, other brokers' recent valuations indicate there is upside potential for Pro Medicus shares.
Bell Potter has a $320.00 target, and last month Citi placed a price target of $350.00 on the health care stock.
TradingView has a 12 month price target hovering around $326.00.
From current levels, these targets indicate between 11-22% upside.
