finnCap upgraded its adj EPS +5%, raised TP to 1750p
Companies: Bioventix Plc
Significant currency tailwinds and Vitamin D Assay product sales growth helped Bioventix achieve strong growth in revenue and profit in the first six months of FY17, it announced on Monday.
In its interims to 31 December, the UK-Pharma small-cap reported a decent 32% increase in revenue, and an impressive 49% jump in pre-tax profit to £2.48m. Bioventix also raised its first interim dividend by 21% to 20p.
Growth was primarily driven by growing sales of its vitamin D antibody range, with shipments to China continuing at a high frequency. However, the Group also benefitted significantly from the post-Brexit fall in sterling, which gave the exporter a 15-20% uplift, as it had no hedging mechanisms.
Bioventix broker finnCap upgraded its adj EPS up 5% to 78.7p, and raised its target price to 1750p:
"At this price level, the shares would trade on a 22.4x FY 2018 P/E and an EV/EBITDA of 17x. We await confirmation of Siemen’s high sensitivity troponin assay launch, expected in FY 2018."
The company said it was delighted to report the results:
"We are delighted to be able to report such positive news for the current half-year. We are pleased with the continued success of our vitamin D antibody and remain optimistic about our troponin project and the success of Siemens as their product launches around the world. "
Shares in BVXP rose 4% on Monday, bringing 2017's gains to more than 30%. The consensus expectations is for £6.1m revenue for the full year, with a pre-tax profit of £4.70m, EPS of 74.80p, and a 51p dividend. Shares will go ex-dividend on 6 April, and the dividend will be paid later that month.
