Despite Nanosonics' first half results being largely in line with expectations and company guidance, the share price declined -13% following the results release. Sales were up 41% in the half, and momentum appears to have continued into the early second half.
The share price decline is a continuation of selling pressure that has seen the stock decline -25% in the past month, which Morgans attributes to concern around the GE Health transition and CORSIS commercial launch.
Morgans notes the stock suits investors with a higher risk profile. The Add rating is retained and the target price decreases to $5.43 from $5.97.
Sector: Health Care Equipment & Services.
Target price is $5.43.Current Price is $4.10. Difference: $1.33 - (brackets indicate current price is over target). If NAN meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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