Broker Liberum has identified hVIVO PLC as one of its best investment ideas for 2023.
This is based on the company's strong performance in 2022, as highlighted in Wednesday's trading statement.
The update showed sustainable revenue growth, as well as an outperformance in both the EBITDA margin and cash generation, Liberum said.
The healthy contracted order book also gives 95% visibility over 2023 revenue expectations, with the potential for upgrades later in the year, it added.
Liberum said the high underlying margin profile also drives a structural 4-5% upgrade to EBITDA throughout the forecast period.
As a result, the broker has increased its target price for hVIVO shares from 21.60p to 25.10p and maintained its 'strong buy' rating.
In afternoon trade, the stock was changing hands for 17.47p, up 17.3% on the day.