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A Health Stocks Summary just arrived in my inbox, including some analysis by Scott Power from Morgan's Stockbroking. Morgans have a price target of $1.34

ScoPo’s Powerplay: Mach 7 Technologies

Health imaging company Mach 7 Technologies (ASX:M7T) is Power’s stock of the week. M7T is a global provider of enterprise image management systems enabling healthcare enterprises to identify, connect and share diagnostic imaging and patient care information when and where it is needed.

Power said M7T posted a strong FY22 result, with another year of record revenue up 42% on pcp, as well as a strong sales order pipeline which will drive growth in FY23 and beyond.

Over the year, the business mix has trended towards more SaaS based deals (60/40 split) with customers increasingly open to transitioning from capital to subscription contracts.
“We view this as a positive trend with the market valuing SaaS contracts more highly, and we have rolled forward our model, made no changes to our forecasts, and our DCF valuation remains unchanged at $1.34 with Add maintained,” Power said.
He said Mach 7 has cash on balance sheet of $25.3 million, no debt and positive EBITDA.

The Mach 7 share price is up more than 10% in the past five days.