SYDNEY, June 24, 2026, 09:06 (AEST)
Pro Medicus Ltd (ASX: PME) traded through its S&P/ASX 50 exit with barely any net move in price. Shares finished Tuesday at A$172.93, up just 0.08% from the A$172.80 close Friday, when the reshuffle hit. PME is up 36% from May 25. Turnover jumped Friday to 1.19 million, more than 58% the sum of Monday and Tuesday, showing most index-driven trades landed at the close of the rebalance. Buyers and sellers can’t be seen in public data.
ALS Ltd is set to join the S&P/ASX 50 next week, with Pro Medicus dropped from the list, S&P Dow Jones Indices said. The move is effective before Monday’s open. The index review showed Pro Medicus as an ASX 50 removal only, not flagged for the ASX 100 or 200. Passive funds that track the index usually adjust around the change date.
ASX cash market was in pre-open at 09:06 AEST, with regular trading due to kick off near 09:59:45 Sydney time. June 24 isn’t named as a 2026 exchange holiday, according to the .
S&P/ASX 200 lost 0.47% over Friday to Tuesday. Pro Medicus edged up 0.08%. After the index rebalance, no lasting technical drag showed up in the first two closes since it dropped out of the top 50.
Valuation is a tougher question. FactSet consensus for fiscal 2026 EPS has dropped to A$1.49, down from A$1.61 three months ago. For fiscal 2027, the estimate moves down 4.7% over that span to A$1.81. Tuesday’s close puts the stock at about 116 times FY26 earnings and 96 times FY27 earnings. Analysts’ average price target is A$189.47, or 9.6% above current levels, but targets start at A$110 and go up to A$245.
Watch the profit numbers — Pro Medicus reported first-half net profit at A$171.2 million. But underlying net profit came in much lower at A$67.3 million. That gap is mostly from a A$149.1 million pre-tax, unrealised gain on its 4DMedical investment. The fair-value gain is just an accounting revaluation, not cash from software sales. Revenue rose 28.4% to A$124.8 million. Underlying profit climbed 29.7%.
Pro Medicus is betting that contracts will convert into steady recurring revenue. On June 4, the company said it landed a five-year, A$16 million renewal with Ohio State University Wexner Medical Center. The new deal tacked on workflow and cardiology, and brings higher minimums and bigger fees per transaction. That revenue will track with imaging volumes. “This contract brings our total renewals for the financial year to A$141M,” CEO Sam Hupert said.
RBC Capital Markets analyst Jackson Lee said the five-year renewal showed customers aren’t cutting contract lengths out of worry that AI might disrupt radiology jobs. RBC held its Sector Perform rating, with a A$195 price target.
Hupert told investors during the company’s full-year results that most new contracts inked in the second half of fiscal 2025 will begin to deliver revenue in FY26 and after. “There is a very sizeable revenue pathway in front of us,” he said. Pro Medicus
Morningstar analyst Brian Han is holding his ground, keeping his A$54 fair-value estimate with a high uncertainty tag. “Shares remain overvalued, despite the recent correction,” Han said. He pointed to an August 2025 KLAS report, which showed Sweden’s Sectra had more US customer considerations and selections than Pro Medicus in the last two years. AGFA Healthcare is also picking up business. Morningstar
The stock hasn’t reacted much to index selling, but that doesn’t take away the risk on valuation. Delays on rollouts or lighter scan volume would hit revenues under the transaction contracts. Sectra or AGFA making faster gains would squeeze more. At this price-to-earnings level, a small miss on forecasts could trigger a sharp move in the shares.
