Shares in neuroscience analytics firm IXICO PLC (LSE:IXI, OTC:PHYOF) rose 11% on Tuesday after the company said it was well placed to meet or exceed full-year expectations, citing stronger trading, new contract wins and disciplined execution of its strategy.
In a note published the same day, Cavendish Securities reiterated its 'buy' rating and set a 24p price target, more than double IXICO’s current share price of 10p.
The broker said the company is “on track” to return to growth and ultimately profitability, backed by a leaner operating model and expanding commercial footprint.
The update followed interim results showing a 26% rise in revenue to £3.2 million for the six months to 31 March.
Gross profit increased 56% to £1.6 million, and the EBITDA loss narrowed to £0.7 million, down from £1.3 million a year earlier. IXICO closed the period with £5 million in cash, helped by a £3.7 million raise in October.
The company said its order book stood at £13.1 million, including £9.7 million in new business and contract extensions, such as a recently signed deal with a global pharmaceutical company to support a Huntington’s disease trial.
IXICO added that progress on its "Innovate, Lead, Scale" strategy had strengthened the foundations for growth in the second half of 2025 and into 2026.
Product launches planned for later this year include imaging tools to detect vascular abnormalities and neuromelanin, a pigment linked to Parkinson’s disease.
Cavendish noted that the company is operating in a more challenging funding environment for life sciences but is now better positioned to benefit from a recovery in clinical trial activity.
It left its forecasts unchanged but said IXICO could outperform its base case as momentum builds.
IXICO provides brain imaging and biomarker analytics for pharmaceutical clients developing treatments for neurodegenerative conditions, including Alzheimer’s, Parkinson’s and Huntington’s disease.