Morgans: PT to 1.15, page-2

6% EPS upgrade into FY16 and FY17 suggests CAJ have made a couple of very good acquisitions.

CAJ are methodically expanding their geographic presence in NSW, acquiring modern, quality centres (as opposed to the many underinvested old dingy Primary / Sonic radiology clinics). The same strategy that worked so well in making it the No 1 community (non hospital) network in VIC.

I remember at last years budget when there was uncertainty around Medicare charges, and CAJ came out and said industry uncertainty is actually a positive for CAJ, and everyone was a bit suspicious/surprised with that comment. Well it looks as though industry uncertainty has actually led to more industry consolidation opportunities for CAJ as they predicted, so indeed it has been a positive.

Also interesting to see that CAJ have identified rural radiology services as an area of focus, and building a clinic from the ground up in Broken Hill shows that where decent acquisition opportunities are not available, CAJ are willing to make the investment in a facility themselves.