Morningstar Ups Pro Medicus Valuation After Major Contract Win

2 min read | November 28, 2024 07:32 PM EST | By Team Kalkine Media

Morningstar Ups Pro Medicus Valuation After Major Contract Win — Image source: shutterstock

Contract Revenue Spurs Growth Projections

Morningstar attributes the upgraded valuation to an increase in Pro Medicus’ annualized contracted revenue, which is forecast to reach AU$62 million (USD $40.29 million) by FY26, up from a prior estimate of AU$37 million. This growth is primarily driven by the full-year earnings impact of the Trinity Health contract, a deal that highlights Pro Medicus’ competitive strength in the healthcare IT space.

The brokerage now expects Pro Medicus’ total FY26 revenue to hit AU$275 million, a 16.5% increase from its earlier projection of AU$236 million. “We assume a full-year earnings contribution in fiscal 2026, making up 15% of our total revised fiscal 2026 revenue forecast,” Morningstar noted.

Stock Performance Reflects Optimism

Pro Medicus’ shares have been on a stellar trajectory in 2024, more than doubling in value year-to-date. This robust performance underscores investor confidence in the company’s ability to secure high-value contracts and deliver sustainable growth.

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