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PME

Pro-Medicus Unaffected By The Coronavirus Pandemic

Stuart Lucy

Stuart Lucy is an Investment Specialist at the Australian Stock Report, and has gained exposure to funds management and investment banking throughout his career. He draws on this experience to provide macroeconomic commentary and actionable investment insights to clients. Stuart is responsible for writing reports, is involved in delivering Macrovue webinars and provides general advice to our members on portfolio construction. Stuart currently holds RG146 General and Securities qualifications.

Pro-Medicus (ASX: PME) rallied 9% today on the back of the coronavirus pandemic, before coming down during the day. The World Health Organization (WHO) has recently declared the COVID-19 to be a pandemic, which stems from the alarming levels of active cases and increased death rates. While there was no news regarding Pro-Medicus, the rally could have been a result of the radiology technology used to screen the coronavirus.

Pro-Medicus offers Visage mobile application and can be downloaded for free in the Apple Store. Credit: Pro-Medicus

Pro-Medicus is an Australian company that provides a comprehensive radiology software suite, which is sold on a SAAS basis to clients. Pro-Medicus offers both mobile and desktop applications for users. The mobile application connects to the Visage imaging platform and provides clear images of the results. This is a sustainable competitive advantage since it offers flexibility and accessibility without having to be at the office all day. To ensure the security of the Mobile application, only radiologists and account managers can access the client’s profile. This minimizes risks associated with the leaking of personal data without the client’s consent.

The company has an incredible opportunity in AI, which Pro Medicus plans to use to automate a process of continual improvement. Their advantages to scale will further increase earnings quality, by providing a stream of industry-leading data from which their AI-based solution could refine data at much faster rates than competitors. Enablement of a solution that can refine and develop Pro Medicus’ radiology software faster and at a lower unit cost than competitors is set to accelerate their market domination, causing a share price re-rate.


 

Disclaimer:


This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.
ASR has no position in any of the stocks mentioned.

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