Monash IVF long term outlook remains positive

OC Funds Management

Monash IVF long term outlook remains positive. Reproductive services business, Monash IVF, was down 11.8% for the month after underwhelming the market with an update on conditions at its AGM in late October. Monash cited general softness in the market and announced that Q1 cycle growth was negative 3.7% versus market expectations of 3-4% cycle growth per annum. Monash also cited market share losses in South Australia, where a rebound since a competitor stopped bulk-billing has taken longer than expected. Monash went on to comment that new patient registrations/conversions across the business have strengthened recently and are in-line with prospectus forecasts for the rest of the year. Despite the set-back, the stock looks cheap given the longer term earnings outlook and currently trades on a FY15 PE of 13 times and a fully franked yield of 5%.


OC Funds Management
OC Funds Management

OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment