ImexHS has announced a strong FY21 trading update and tightened guidance. Morgans estimates the company's annual recurring revenue is already sitting at $19m after recent acquisitions and contract wins.

ImexHS shares have take a pounding on the rotation out of growth stocks in the past year but Morgans says the company continues to grow volume across existing clients, win new contracts and improve execution on contract implementation.

The company has also announced a strategic partnership with global distributor Neusoft Medical, which Morgans expects will extend its distribution reach.

The broker views the stock as materially undervalued, announcements demonstrating strong progression to breakeven in FY22. Speculative Buy rating retained. Target price steady at $2.55.

Sector: Health Care Equipment & Services.

Target price is $2.55.Current Price is $0.96. Difference: $1.59 - (brackets indicate current price is over target). If IME meets the Morgans target it will return approximately 62% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena