Broker Northland Capital has initiated coverage of shares in the medical devices specialist Polarean Imaging PLC (LON:POLX) with a 46p a share valuation.
The Northland target, derived using discounted cash flow analysis, is roughly triple the current price.
The company is currently running two phase III trials for its drug-device platforms, which analyst Vadim Alexandre believes will propel it into the lucrative pulmonary disease market, which is estimated to be worth US$150bn in the US alone.
“Polarean expects over US$500mln in system sales just to top-tier institutes,” said Alexandre in a note to clients.
The shares were off 15% in early trade after it said it had conditionally raised US$4mln from investors at a price of 14p.
Those who took part in the fundraiser will no doubt be keenly interested in the Northland analysis, which speaks to the significant potential of Polarean, which listed on AIM in March.