Pro Medicus Growth Not Expected to Be Impeded by Artificial Intelligence, Jefferies Says

MT Newswires Live07-09

Pro Medicus' (ASX:PME) growth is not expected to be impeded by artificial intelligence, but at the current share price, the market seems to be assuming that the firm will have a market share of the US picture archiving and communication system (PACS) market of around 51% by fiscal year 2035, from 11%, according to a Thursday note by Jefferies.

The firm's Visage PACS demonstrates class-leading low latency, which continues to drive market share gains. Large data sets, a shift to the cloud, and low growth in radiologists in the US are industry drivers over the medium-term.

AI is more likely to enhance Visage's value proposition because of its server-side streaming architecture, enterprise imaging "one viewer" strategy, and its cloud partnerships.

The investment firm downgraded Pro Medicus to hold from buy and raised the price target to AU$192.60 per share from AU$147 per share.

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