hVIVO PLC's (AIM:HVO) acquisition of Cryostore should be a boost for its growing hLAB and biobank business, according to Peel Hunt and Stifel.
The brokerages note that hVIVO already processes over 85,000 samples a year and stores more than 500,000, making the deal strategically important.
The £3.2 million acquisition, mostly in cash, brings in a debt-free business that has worked with hVIVO for over two decades.
Peel Hunt and Stifel highlight Cryostore’s high-standard, temperature-controlled facilities in Greenwich, which serve global pharmaceutical and biotech clients.
The deal is expected to cut costs, improve margins and create cross-selling opportunities.
Stifel sees the purchase as a logical move that broadens hVIVO’s services while improving profitability. The firm said it leaves its forecasts unchanged but believes the stock’s current valuation offers an “attractive entry point.”
Cryostore generated £900,000 in revenue last year, with 97% repeat business. Peel Hunt has a 34p target on hVIVO, while Stifel has set it at 30p.
The stock currently trades at 15.75p.