Virtus Health's share price rises
With Virtus's share price ticking upward, we're downgrading to Hold.
Recommendation
Virtus Health Limited -
VRT
Buy
below 4.00
Hold
up to 6.00
Sell
above 6.00
HOLD at $4.29
Current price
$8.10 at 16:35 (05 August 2022)
Price at review
$4.29 at (08 June 2019)
Max Portfolio Weighting
4%
Business Risk
Medium-High
Share Price Risk
High
All Prices are in AUD ($)
IVF provider Virtus Health's share price has risen 11% since the company announced the sale of its AI software on 11 April 19 (Buy - $3.87). The stock now sports a price-earnings ratio of 14 based on consensus estimates for 2019 earnings and a fully-franked dividend yield of 5.6%. Virtus has economies of scale, a strong brand and moderate long-term growth prospects, but after rising past our recommended Buy price, we're downgrading it to HOLD.
Disclosure: The author owns shares in Virtus Health.
Note: Our Model Growth and Model Income portfolios own shares in Virtus Health.
IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
Recommendation
Virtus Health Limited -
VRT
Buy
below 4.00
Hold
up to 6.00
Sell
above 6.00
HOLD at $4.29
Current price
$8.10 at 16:35 (05 August 2022)
Price at review
$4.29 at (08 June 2019)
Max Portfolio Weighting
4%
Business Risk
Medium-High
Share Price Risk
High
All Prices are in AUD ($)
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