Broker reinstated forecasts for IXICO PLC (LON:IXI) and reinstated its 'buy' recommendation after the brain scan analytics specialist's trading update on Wednesday.
"We view the trading update as a display of confidence in the ability of the company’s remote access business model, proprietary technologies, and centralised AI data analytics capabilities to continue to serve its client base," analyst Chris Donnellan said in a note to clients.
READ: IXICO eyes better margins and double-digit revenue growth in 2020 and 2021
Having already revealed in May's half-year report that its order book stood at over £22mln following the signing of the company’s largest single contract, the analyst said the size and visibility on future revenue streams provided by the order book have enabled management to provide guidance out to September 2021.
"In this current period of high uncertainty, we believe IXICO offers the opportunity to invest in a high growth, high forward visibility, profitable business with positive operating cash flow and a strong balance sheet," Donnellan added.
"With a confident stance on near-term growth and strong mid- to long-term prospects based on the potential in the biopharmaceutical CNS disease pipeline, we believe the outlook for IXICO looks exceptionally strong."
IXICO shares were up more than 7% on Wednesday afternoon to 69.85p, up almost 120% over the past 12 months.