PME gets broker upgrade from Goldman Sachs and now hitting all time highs

Lesson here is to go with the flow of the institutions and ignore those quoting that PER is too much.

Although I'm aware many aren't interested by PME, I thought I'd share some thoughts from the institutional analysts for those that may be interested in what is keeping the share price up.

Price targets to 71 with many upgrades. Wilson is most bullish. There is an unamed broker with price target of 28.50.

I downloaded the data from Capital IQ so it can be displayed more easily.

I have to admire the previous straws about PME being overvalued and trading at high valuations.

People probably buy stocks with no profit or are expensive for the same reason they would buy PME.

Some examples come to mind:

NST: trades at a high PE and premium to my NPV valuation despite the gold price going down. Management (Beament's legacy lives through Tonkin) and future value (2M Oz PA target).

DVP: No profit to show for yet but has top management via Beament.

AD8: No profit yet but sales are exponential

And then there's CXL, SLX, NEU, MIN, WTC, ALU, AEF etc...

I wish I not listened here and just bought the dip at $35 last year in June 22.

We've still yet to hear a bull case here. Only that it is trading on a high PE even though we are in an era of high interest rates and recession.

Having said all this, isn't PME also a healthcare stock? If so, then shouldn't it deserve the valuation because investors flock to healthcare sector during a recession regardless of its PE?

When going to RNS Private Hospital last week for family reasons, the doctor pulled up the imaging software to view some scans.

I couldn't catch the name of the software, but don't think it started with a V maybe an X

So I'm wondering who are the competitors in this space, and if so, is PME overvalued? And are fund managers and institutions getting it wrong bidding the price up 50+?

Need to start doing some research...

Tallying up the Sell Recos

Sell PME from both in Buy Hold Sell from May - https://www.livewiremarkets.com/wires/buy-hold-sell-5-discounted-growth-stocks-2022-05-26

Sell from Claude Walker and Luke Winchester - The call 23 June 2022 (??)

Sell from Rudi - FNArena

No buy recos

Apart from Pro-Medicus who are doing a buyback and the contraction cycle we are in (if Pro Medicus qualifies as healthcare despite the high growth multiple), I would like to see a bull thesis from a fund on Pro Medicus for a change.

Have to say no one can make up their mind on the valuation of PME.

On the latest "the call", Claude and Luke put a hold saying they'll buy in the low 30's

Then there are other price targets floating around in here from 39 to 45.

Finally there is a buyback happening which distorts price discovery (and is conveniently not mentioned in the latest episode)

All we know is that this is a quality software company, if they can execute the future strategy.

Probably should have left my buy order sitting at 38-39.