Morgans rates IME as Add (1) -

ImexHS has announced a strong FY21 trading update and tightened guidance. 

Morgans estimates the company's annual recurring revenue is already sitting at $19m after recent acquisitions and contract wins.

ImexHS shares have take a pounding on the rotation out of growth stocks in the past year but Morgans says the company continues to grow volume across existing clients, win new contracts and improve execution on contract implementation.

The company has also announced a strategic partnerships with global distributor Neusoft Medical, which Morgans expects will extend its distribution reach.

The broker views the stock as materially undervalued, announcements demonstrating strong progression to breakeven in FY22. Speculative Buy rating retained. Target price steady at $2.55.

Target price is $2.55 Current Price is $0.99 Difference: $1.56

If IME meets the Morgans target it will return approximately 158% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Morgans forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 12.00 cents.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.25.

Forecast for FY22:

Morgans forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.00 cents.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.00.

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources