Kromek Group PLC (AIM:KMK) has been tipped for substantial upside, with stockbroker Cavendish predicting up to 157% upside, as the detection technology specialist said FY26 revenue growth and profit before tax were tracking in line with market expectations.
Cavendish repeated a 'Buy' recommendation and 26p target price, which compares to a market price of around 10p.
The broker, in its note, said it expects group revenue of £27.1mln for the year to April 2026, up 2.4% from £26.5mln a year earlier, with reported profit before tax of £1.9mln and adjusted PBT of £2.3mln. That compares with the company-collated consensus for £27.2mln of revenue and £2.15mln of reported PBT.
“Given company-collated consensus is for FY26 revenue £27.2m and reported PBT £2.15m, we view today’s update as demonstrating strong delivery,” Cavendish said.
The broker pointed to increased revenue in Kromek’s CBRN Detection division and underlying growth in Advanced Imaging, the latter excluding the exceptional contribution from the previously signed Siemens Healthineers agreement.
Cavendish estimates Advanced Imaging revenue, excluding Siemens Healthineers milestones, rose to £10.9mln from £3.5mln, representing underlying year-on-year growth of more than 200%. Milestones from Siemens Healthineers are estimated at £9.0mln, compared with £16.5mln in FY25.
Supply chain disruption linked to global trade and geopolitical tensions affected order timing in Advanced Imaging, Cavendish noted, though this was largely offset by a major order from an existing customer in the second half.
Kromek secured £8.8mln of new orders in the second half, a significant proportion of which was delivered within the year.
“Given positive momentum and execution against strategic priorities, we reiterate our investment thesis and Buy recommendation,” Cavendish said.