AUA has released its 3Q quarterly report, marking a disappointing sales result following the impact of the January COVID spike followed by the floods impacting major sales jurisdictions in QLD and NSW. While early period trading results were soft as a result, March logged AUA’s third highest month of sales which continued into April, auguring well for a 4Q recovery. AUS clinic footprint continues to improve albeit at a slower pace now that the major clinical targets have neared peak saturation. The initial phase of the AUS clinic strategy is now broadly complete, with the local driver going-forward being increased engagement within the clinics to ramp same-store device sales. While signs are strong for a rebound in 4Q22, the quarter was weaker than we expected and as a result we have revised downwards our long-run clinic sales assumptions to reflect a slower clinic sales maturity profile until we get a better sense of the outlook and ability to increase sell-through across the install base. Our changes to forecasts has reduced our valuation and target price to A$0.22 (from A$0.33) although retain a Speculative Buy recommendation.