Initiating coverage of the vaccines business, finnCap set a price target of 40p a share based on its analysis of the company’s peer group. Currently, the stock is changing hands for just over 20p.
Analyst Mark Brewer reckons the allergy immunotherapy market is worth around US$800mln here in Europe and US$1.7bn in the US.
“The potential addressable market, however, is estimated to be much larger at nine billion dollars,” he added.
The company’s lead product is Pollinex Quattro (PQ), a short-course hay fever treatment administered by injection.
On sale here in Europe, it is undergoing trials ahead of regulator sign-off in the US. In fact Brewer reckons there is “substantial further upside” when PQ gets the green light Stateside.
“A development programme that should result in an approved product in Europe and the US in 2021 provides significant upside to the current valuation,” said the finnCap number cruncher in his investment conclusion.
“We consider the current share price to be out of line with its nearest peers.”
The 33-page report gives a comprehensive overview of Allergy and also provides some financial grist.
finnCap reckons Allergy will turnover £59.4mln this year, rising to £65.4mln and then £71.4mln.