IXICO PLC (LSE:IXI, OTC:PHYOF) shares climbed on Tuesday after Cavendish said the neuroscience imaging specialist had delivered a “pivotal year”, prompting the broker to lift its target price to 26p from 24p. The shares were up 11% at 11.96p.
Cavendish said the company’s full-year numbers marked a return to growth, with revenue rising 13% to £6.5 million and gross profit improving to £3.2 million, both ahead of expectations.
The broker highlighted that IXICO had “significantly reduced” its EBITDA loss to £1.3 million, better than its earlier forecast of a £1.7 million loss, and ended the year with £3.5 million in cash.
The note pointed to progress in diversifying IXICO’s customer and therapy mix, with the year-end order book 23% exposed to Alzheimer’s projects and 48% to Huntington’s disease.
Importantly, new contract wins accelerated after year-end, lifting the order book to £17.7 million by November, 27% higher than at the period end.
On the back of the results, Cavendish upgraded its 2026 revenue forecast by about 8% to £7.5 million and raised gross profit estimates by 15%, expecting further double-digit growth supported by an improving clinical-trials market and expansion in the US.
IXICO’s “return to growth narrative offers strong upside potential”, the broker said, with the shares trading on less than 1x sales.
Cavendish reiterated its 'buy' rating and 26p price target, arguing that the company is moving towards sustainable growth and profitability.