Someone's noticed us, page-3

Medical imaging company Pro Medicus has been one of the strongest stocks on the ASX in the past few months and analysts and fund managers believe it has plenty more upside.

The $450 million company, which has been listed since 2001, has largely flown under the radar, but has impressed investors lately with a number of major contract wins.

Select Equities director Mark Southwell-Keely said the company was one of the few "genuine success stories", out of the small cap technology stocks on the ASX.

"The smart money does know about this company's story," he said. "One of the things the company does not need to do though is raise capital, so it doesn't attract as much coverage."

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"Its technology is a quantum leap ahead [of other radiology image viewing techniques]."

STRONG TAILWIND
The stock has risen almost 60 per cent to $4.45 since March, while the broader market has gained about 9 per cent.

In that time Pro Medicus has signed a $21 million contract with Mercy Health and a $7 million deal with US-based Franciscan Missionaries of Our Lady Health System, which have potential to be worth more.



The Melbourne-based company is enjoying a strong tailwind from the increased digitisation of imaging software and the ageing population, but it's the company's ability to gain traction in the US market that has UBS portfolio manager Joel Fleming feeling bullish.

"Across the board it's really hard to find growth in the market at the moment. Most economies are under pressure and finding businesses that are growing by taking market share or creating a new market is tough. But Pro Medicus is growing independently of what's happening in the Australian economy," he said.

"It's also competing with some very large multinationals, so the fact they've gained traction in the US market is huge ... it gives us confidence that the market is taking this product up ... and that makes the next sale easier."



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