Nanopore sequencing developer Oxford Nanopore Technologies PLC (LSE:ONT) has been granted an ‘outperform’ rating by Royal Bank of Canada (TSX:RY) analysts, ahead of its full year results being published on 17 January.
RBC suggested a target share price of 400p for the tech firm, up from its current value of 277.5p.
“At £206mln, we are largely in line with consensus for sales,” RBC outlined, equalling a yearly increase of 22%.
This would see Oxford Nanopore growing faster than its competitors and enjoying more revenue opportunities, the bank added, even though this has potentially slowed in recent months.
The company produces technology spanning population genomics, viral surveillance, neurological disorders, cancer and environmental conservation.
“Most of its (Oxford Nanopore’s) innovations can be utilised on existing equipment,” RBC said, meaning its “product cycles should be longer and smoother” than competitors, Illumina and Pacific Biosciences.
Having floated on the London Stock Exchange in October 2021, Oxford Nanopore saw its half-year revenue up 107% when it last reported in September, while gross profits grew 158% from £30mln to £78mln.
“While we remain mindful of the macroeconomic environment, this progress, coupled with our strong balance sheet, gives us confidence as we look ahead,” commented chief executive Gordon Sandghera.