Reporting season presents a good opportunity for analysts to reassess the companies they're watching, and update their price targets accordingly.
I've selected two companies in the health sector which the team at Jarden has just released new reports on.
Let's see what they're saying.
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Imricor Ltd (ASX: IMR)
In late July, Imricor launched its US commercialisation program and has since signed up two customers to use its NorthStar cardiac catheterisation technology.
The company said several US hospitals were also in the final stages of purchasing, "with revenue from initial NorthStar sales expected to comfortably exceed total revenue generated by the European business in CY2025''.
The company also launched a new business vertical in the cardiovascular space, targeting a US market with more than 2000 hospitals.
The Jarden analysts said a focus was the company continuing to pursue full Food & Drug Administration (FDA) approval for its electrophysiology ablation platform, which was more important than the company's financials.
That said, Imricor's net loss of US$15.1 million was higher than Jarden's estimate of US$13.6 million.
The Jarden team added:
We continue to see this as an attractive, catalyst rich story with (i) two US hospitals now signed for NorthStar (with more in the final stages of purchasing), (ii) Imricor opening a new vertical to more than 2000 US hospitals (across adults and paediatrics), and (iii) 14 of 15 products for the full platform now approved or under FDA review. We believe Imricor is approaching a genuine commercial inflection point as it converts nearly two decades of platform development into a recurring, high-margin revenue stream.
Jarden increased its price target on Imricor by 5 cents to $3.35 compared to $2.05 currently.
Integral Diagnostics Ltd (ASX: IDX)
The Jarden analysts said Integral Diagnostics' EBITDA of $164.5 million was a small miss to consensus estimates; however, the company provided little commentary around the result, with more detail expected later this month.
Jarden added:
We have reconsidered the outlook for FY27 and FY28 by processing a slowdown in the earnings trajectory as MRI deregulation and Bulk Billing do not appear to be underpinning earnings growth as much as we expected.
Integral Diagnostics said in its recent release that it expected revenue to be $788-$790 million, up about 25% on the previous year, while its net profit would be $47-$48 million, up about 50%.
Jarden reduced their price target on Integral Diagnostics shares by 30 cents to $2.95. This is still well above the current share price of $2.20.
