Two brokers have repeated their 'buy' recommendations for shares in hVIVO PLC (AIM:HVO) in the wake of an announcement on a key acquisition and an update on trading.
Peel Hunt has a target price of 34p, while Panmure Liberum's valuation is 24p (current price 19.08p).
Earlier, the company said it had taken a big step towards its goal of reaching £100 million in revenue by 2028 with the acquisition of two clinical research units in Germany for £8.4 million (€10 million) from Clinical Research Services Management (CRS).
Based in Mannheim and Kiel, they will add 120 beds to hVIVO’s facilities and expand its ability to conduct early-stage clinical trials.
In a trading update, hVIVO said it expects strong growth in 2025, with revenue forecast to hit £73 million.
Its order book for contracted work stands at £67 million, excluding a major phase III study with ILiAD Biotechnologies.
Panmure observed hVIVO's earnings (EBITDA) outlook for the current year was slightly lower than it had anticipated, based on the latest statement.
"While the latter shouldn’t be a surprise and is, in our view, largely in the price, it is likely to dampen the share price reaction," the broker added.