Shares in Creo Medical Group PLC (AIM:CREO) rose 4% after Deutsche Bank reiterated its 'buy' rating with a 12-month price target of 40p following the company’s trading update on Monday.
Creo expects first-half core technology revenue to rise 40%, in line with management’s expectations and on track with full-year guidance.
The broker notes the benefits of cost base management undertaken in 2024, which should reduce operating expenses and narrow the operating loss.
Trading into the second half remains encouraging, with the board confident of delivering the previously guided 40% to 60% revenue growth weighted towards the historically stronger second half.
Deutsche leaves forecasts unchanged, expecting full-year revenue growth of 50% to £6 million.
It highlights that Creo currently trades at a significant discount to its 40p discounted cash flow target and assigns no value yet to its innovative Speedboat surgical system or Microblate Flex tumour ablation technology.
Next updates include half-year results before the end of September and a capital markets day on 9 October.
The shares were up 0.5p to 13.5p.