Integral Diagnostics' (ASX:IDX) fiscal 2026 results miss seems to be driven by weaker revenue and a disappointing contribution from NZ made worse by foreign exchange headwinds, Jarden said in a note on Monday.
Its group revenue in the fiscal second half grew 5.2%, missing the brokerage's forecasts by 2.1% compared with revenue of AU$788 million to AU$790 million. The firm in recent times has seen a gap between Medicare data and its Australian revenues.
Jarden said it reconsidered the outlook for fiscal 2027 and fiscal 2028 by looking at a slowdown in the earnings trajectory as magnetic resonance imaging deregulation and bulk billing do not appear to be underpinning earnings growth as much as expected.
The investment firm maintained its buy rating on Integral Diagnostics and lowered its price target to AU$2.95 from AU$3.25.
Integral Diagnostics' shares jumped almost 5% in recent Tuesday trade.