The reveal that hVIVO Plc's (AIM:HVO) order book has more than doubled to £65 million, prompting Shore Capital to reiterate a Buy rating and 25p target price despite a steep second-half delivery challenge.
The target implies 270% upside from the current 6.8p share price.
In a note, following this morning's trading update, Shore Capital said the improved order book, up from £30 million at the start of the year, alongside a 45% rise in proposal volumes, strengthened visibility into 2027 and 2028.
First half revenue fell 33% to £16.3 million, and hVIVO expects an EBITDA loss of between £4 million and £6 million. The company nevertheless maintained FY26 revenue guidance of £50 million to £51 million, implying around £34.7 million must be delivered in the second half.
Shore described the update as reassuring, arguing that contract delays should be viewed as “revenue deferred, not revenue lost”. It expects hVIVO to return to positive EBITDA during H2.
Elsewhere, Panmure Liberum was more cautious, retaining its Hold recommendation and 10p target. Analyst Seb Jantet said strong contract momentum meant hVIVO still had a chance of meeting guidance, but warned that “any headroom has now been used up” and noted that the word “broadly” had entered the company’s guidance language.
Panmure left its forecasts unchanged but said execution risk remained high, compounded by challenging conditions in the human challenge trial market.
