Following in-line 1H results, Canaccord Genuity chooses to focus on the opportunity for Alcidion Group in the UK, where the government is supporting a shift to digitising healthcare.
The NHS in the UK has a goal to improve the presence of electronic patient records (EPRs) in hospitals which plays into Alcidion Group's wheelhouse, suggests the analyst.
The 2021 acquisition of Silverlink Software (which services the NHS) allows the company to target more clients with unique and complex requirements, points out the broker.
The 20c target and Buy rating are unchanged.
This report was published on February 27, 2023.
Target price is $0.20 Current Price is $0.13 Difference: $0.07
If ALC meets the Canaccord Genuity target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents. Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.50.
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