Creo Medical Group PLC (AIM:CREO) is at a "significant inflection point", its corporate broker Cenkos Securities said in the wake of the group’s trading statement earlier on Wednesday.
Retaining its ‘buy’ recommendation on the stock, Cenkos told investors: "We believe Creo Medical is at a significant inflection point in its development, with an increasing number of core Creo device users undertaking procedures on a regular basis, two Kamaptive licensing agreements announced and regional expansion of its consumables business underway.
“We expect this progress to be reflected in the financial reports from FY23E onwards, providing quantitative support to our opinion on the significant value of Creo Medical’s technology.”
Creo, a creator of minimally invasive surgical endoscopy products, said in its update that it is looking at additional options to fund its growth ambitions. Cenkos reckons around another £15mln will satisfy the company’s requirements.
In a separate research note, Numis, a joint broker to Creo, repeated its 205p price target for Creo stock.
“The shares currently trade on just 1.4-times enterprise value-to-sales, which we think represents excellent value assuming the financing situation is resolved,” Numis concluded.
In late morning trade, Creo’s shares were trading sideways at 24.8p.