Monash IVF shares rebound as Macquarie calls selloff an 'overreaction'
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Monash IVF have rebounded from a sharp fall on Tuesday, which was triggered by the revelation of a second embryo mix-up by the fertility clinic provider this year
The numbers: Monash IVF shares were up 13.3% to 61.8% at 2:20pm AEST on Wednesday after closing 26.9% lower on Tuesday.
The context: Monash IVF announced in a statement on Tuesday that it had incorrectly transferred a patient’s own embryo back to the same patient, rather than the embryo of their partner.
Macquarie analysts said that despite potential reputational damage, Tuesday's share price move was an "overreaction", with the selloff leaving Monash IVF trading at a 53% discount to its five-year average.
What they said: "Despite incidents, we believe the share price has overreacted and valuation is attractive at current levels," the analysts said.
"We continue to see medium-longer term tailwinds for the IVF industry, with [Monash IVF] well placed to capitalise on genetic testing growth."
The source: Macquarie research
