Morgan Stanley cuts rating, PT on Australia's Integral...

Morgan Stanley cuts rating, PT on Australia's Integral Diagnostics

Jan 10, 2024 at 4:06 am GMT

** Analysts at Morgan Stanley downgrade Integral Diagnostics IDX.AX to 'underweight' from 'overweight'; slash PT to A$1.70 from A$1.95

** Shares down as much as 1.3% at A$1.86

** Brokerage says downgrade due to relative uncertain margins outlook as highlighted in co's recent trading update, which flagged adverse impact to Q1 FY24 operating profit

** Adds, discount to long-term price-to-earnings average is warranted due to uncertain outlook

** Says higher capex spend in absence of M&A opportunities and regulatory headwinds to MRI could make it difficult to project trajectory of assumed margin recovery

** Eight analysts rate the stock "buy" or higher, six "hold" and one "sell" or lower; their median PT is A$2.44 – LSEG data

** Stock had fallen ~34.8% in 2023