Pro Medicus' (ASX:PME) two recent contract awards in the US will help discredit fears of competitors in the artificial intelligence space eroding long-term demand, RBC Capital Markets said in a note, the Australian Financial Review reported Monday.

The company disclosed that US subsidiary Visage Imaging renewed its partnership with Allegheny Health Network through a five-year contract valued at around AU$28 million, and also signed a seven-year contract with TidalHealth valued at AU$16 million.

The contracts show that customers remain committed to longer term deals as opposed to shorter agreements that would maintain flexibility for AI-native alternatives, RBC analyst Jackson Lee said, according to the report.

The awards also add to traction seen in the company's cloud imaging platform and transaction-based revenue model, RBC reportedly said.

The investment firm kept a sector perform rating on Pro Medicus with a share price target of AU$195, AFR reported.

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