GENinCode PLC (AIM:GENI) shares offer substantial upside - that’s according to analysts at Cavendish.
The stockbroker, in a note following Friday’s £4 million equity raise, asserts that GENinCode can now kick on commercially with the support of its new funding.
Specifically, analyst Chris Donnellan highlighted that GENinCode had made strong progress transitioning its early access programme into commercial sales, advancing its regulatory approvals, and it is increasingly well-placed to grow revenue and progress to breakeven.
“The company has identified specific opportunities in each strategic region that it will target to drive ongoing test adoption and revenue growth,” Donnellan said in a note.
“Building on this early commercial traction, the company is targeting achieving breakeven in the medium term, based upon adding new sales regions and channels in the UK and Europe and increasing the volume of tests sold in the US.”
The analyst added: “GENinCode is targeting achieving breakeven in the medium term, through significant revenue growth and controlled operating expenses.
“Achieving this growth will require GENinCode to grow test volumes, with specific growth opportunities identified.”
“We believe the company will need to generate revenues of c£900k/month at a group level and exercise reasonable cost control to achieve monthly cash positivity, which the company believes can be reached during 2H26.”
Cavendish has a 20p target price, versus a prevailing market price of 3.77p.
GENinCode on Friday reported that it was raising up to £4 million of fresh capital through a share placing and subscription. Priced at 3.7p per share the placing is pitched a modest 5% discount to Thursday’s market close.
In Friday’s statement, GENinCode said: “The group will focus on completion of its US regulatory and reimbursement program whilst driving commercialisation in the US, expanding its activities in the UK and Europe.
“The objective of the fundraising will be to scale US revenues following receipt of FDA approval and increase traction with the NHS in the UK and expand its EU market.”