Light Science Technologies Holdings PLC's (AIM:LST, FRA:9FD) valuation could see significant upside if its pipeline converts as expected, according to house broker Shore Capital, which framed the latest results as a look-through story.
The broker said the group’s £8.6 million revenue for the 2025 financial year understates its medium-term potential, pointing to a combined pipeline of around £54 million across its passive fire protection and agri-technology divisions.
That gap between current revenues and future opportunity underpins the investment case, with Shore Capital highlighting increasing confidence in a stronger second half of the 2026 financial year as conversion rates improve.
The Passive Fire Protection division remains central, described as “the division driving our investment case”, with regulatory support expected to accelerate project approvals.
Shore Cap analyst Rob Sanders said the recent acquisition of Injectaclad strengthens the group’s positioning through greater control of intellectual property and supply chains, while also supporting higher margins.
On valuation, he suggested current estimates may prove conservative, with the analyst's base case valuation of 4.6p per share but this could be exceeded if both Passive Fire Protection and agri-technology deliver stronger growth.
The note added that the valuation “could be multiples” of this level under a more optimistic scenario.