Intelligent Ultrasound Group PLC (LSE: IUG)

Intelligent Ultrasound Group PLC (LSE: IUG) is an FTSE AIM All-Share index listed one of the world's leading 'classroom to clinic' ultrasound companies, specialising in real-time hi-fidelity virtual reality. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

The Company will release preliminary results for FY22 ended 31 December 2022 on 20 April 2023.

Investment Rationale – Watch at GBX 11.19

• Revenue Decline in Reseller Market: IUG’s markets in Europe and Asia are expected to show revenue decline of around 19% from £2.2 million in FY21 to £1.7 million during FY22 largely due to the impact of Covid-19 on the Chinese market.
• Loss-Making Entity: The Company has reported an operating loss of £1.35 million and loss before tax of £1.37 million during H1 FY22.
• Technical Indication: The 14-days RSI of ~78.47 illustrates that the stock price has approcahed an overbought territory, indicating a correction in the stock price.
• Macroeconomic Uncertainties: IUG's performance is susceptible to inability to deliver expected acquisition synergies, economic recession, volatile equity markets, high levels of inflation, and rising interest rates.

Share Price Chart

Conclusion

Based on the loss-making nature, macroeconomic challenges, and adverse impact of Covid-19 on the Chinese market, a "WATCH" recommendation on Intelligent Ultrasound Group PLC has been given at the current market price of GBX 11.19 (as of 18 April 2023 at 08:39 AM GMT+1).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 18 April 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

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