What’s the price target for Imricor Medical Systems (IMR)
Hi James and Team, I'm keen to hear your thoughts on IMR. In the past 12 months they have moved into the ASX 300, been priced from 0.41 to a recent high of 1.82 Love your Q&A reports
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Hi Frank,
For subscribers not familiar with Imricor Medical Systems Inc (IMR), its a $526mn US-based medical device company specializing in MRI-compatible technologies for cardiac ablation procedures, reducing reliance on traditional X-ray imaging. In recent years this has been a growth stock on steroids:
- IMR achieved approximately $US959,000 in revenue for FY24, a 56% increase compared to the previous year.
- Looking ahead, revenue is tipped to grow an an average annual increase of ~90% over the next three years.
IMR has conducted several capital raisings to support its growth and expansion strategies although its already been to the well this year; the company raised $70mn at $1.41 in March following a $35mn raise at 52c last July. The stocks rapid ascension has left the stock largely uncovered, and this is actually our first question on the business.
- Revenue is generated from hospitals, research centers, and medical institutions that perform cardiac ablations, especially those investing in MRI-guided ablation procedures.
- Europe is currently the key driver for IMR with the US still in the pre-commercial or clinical phase but its expected to be a major future revenue driver.
- The main four countries driving revenue at present are an eclectic bunch: Hungary, Germany, Switzerland and Qatar.
With huge markets still waiting to open for IMR we can understand why the stocks priced for huge growth. Things read well at the moment but we wouldn’t be surprised to see the stock pullback below $1.50 after its exponential appreciation.
