Shore Capital says LLight Science Technologies Holdings PLC (AIM:LST, FRA:9FD) could be worth several times its current share price, after welcoming a trading update from the group's passive fire protection division.
The broker pointed to recent order momentum as evidence that the £20 million revenue target underpinning its valuation is within reach.
Its analysis derives a fair value of 4.6p a share, against a current price of 1.81p, based on a discounted cash flow focused solely on the passive fire protection division hitting that revenue target.
Shore described that figure as especially conservative, arguing the value per share could ultimately be a multiple of 4.6p if the group's agriculture technology arm also gains traction.
The broker was responding to news that the division had secured orders and projects worth between £1.28 million and £1.66 million since the April acquisition of Injectaclad, a patented fire-resistant barrier system.
Shore said the system had been integrated into the division and had now generated around £890,000 of material supply orders since the deal completed.
It said greater awareness of the Injectaclad solution among the Building Safety Regulator could drive both the order book and the pipeline higher through the current financial year and beyond.
The broker also highlighted progress across the group's other divisions.
It noted that the agriculture technology arm had announced two contracts accounting for the bulk of a forecast doubling in that division's revenue this year.
Shore added that further traction in higher-margin sectors within the contract electronics arm should improve revenue visibility and lift gross margins above 30%.
The broker reiterated its house stock stance on the company.
Its forecasts point to revenue rising from £11.7 million this year to £21.5 million by the financial year to November 2028, with adjusted pre-tax profit reaching £2.5 million over the same horizon.
