Novacyt is emerging from a transitional period as a leaner and more focussed business with a scalable platform and a credible value creation strategy. Revenues are expected to scale on the back of organic growth and new product innovation in key reproductive health and precision medicine markets. It has the balance sheet strength to comfortably fund its organic growth plan and reach breakeven over the next few years. Strategic partnerships or accretive M&A could further accelerate the move to profitability. We initiate coverage a Buy, with a 64p TP.