EKF Diagnostics rated a ‘Buy’ with 39p target price
Growth stock tipped by analyst Dr Mike Mitchell, at house broker Panmure Gordon
EKF Diagnostics has been tipped by analyst Dr Mike Mitchell, at new house broker Panmure Gordon.
EKF, a point-of-care, central laboratory and molecular diagnostics business moved to Panmure Gordon from Canacord Genuity on February 2, 2015. In an initiation note, which was typically comprehensive, Dr Mike Mitchell placed a ‘Buy’ recommendation with a price target of 39p on the stock.
In the note, Dr Mitchell wrote: “A strategy to combine M&A with organic growth has allowed EKF management to successfully create a global diagnostics business operating well beyond the
‘traditional’ narrow confines of UK diagnostics companies.
“An experienced management team drives the group, with a model which integrates a major presence in PoC (point of care), Central Lab testing and a significant opportunity in
the growing field of molecular diagnostics. In light of its historic revenue expansion with a compound annual growth rate (CAGR) of 23% from 2011-14 and continued future potential (CAGR 13% 2014 actual-2017 estimated), the current share price offers an excellent opportunity to invest.”
For the full year ending December 31, 2015 Dr Mitchell estimated an adjusted pre-tax loss of £2.4m (2014: £0.8m loss) on revenues of £45.6m (2014: £40.1m).
The writer holds stock in EKF Diagnostics