Kooth PLC (AIM:KOO), the youth digital mental wellbeing specialist, should trade at a significant premium to its peers, according to Panmure Gordon in the wake of the group's prelims.
The record results revealed a 66% increase in revenues to £33.3m and a 40% jump in adjusted EBITDA to £2.3m.
Panmure, using discounted cash flow methodology to value Kooth's shares, reckons they are worth 550p each.
"We believe Kooth should trade at a premium to peers due to its defensible niche in the UK CYP [children and young people], underpinned by the transformational California contract," the investment bank said.
In afternoon trading the stock was changing hands for 268.55p.