Pro Medicus has experienced a significant increase in market confidence after Bell Potter upgraded its price target by almost 100%, now valuing the stock at $260. This upgrade comes as the company has already exceeded this target due to contract upgrades and its strong position in the market.

Bell Potter acknowledged its previous underestimation of Pro Medicus' value, which is further supported by a 10-year, $330 million contract signed with a major U.S. hospital system. Morgans has also raised its price target to $225, although it remains below the current share price. The recent contract was described as "shockingly large," highlighting Pro Medicus' ability to secure significant deals.

Despite impressive growth figures, concerns about the stock's high valuation persist, as indicated by a price-to-earnings (P/E) ratio well above historical norms. A portfolio manager and long-time holder of Pro Medicus suggests a "hold" rating, advising investors to wait for a significant pullback before considering additional purchases.