Futura Medical PLC's (LON:FUM) receipt of full EU approval for MED3000 has prompted house broker Liberum to upgrade its share price target to 80p from 65p.
Approval removes the last hurdle to signing meaningful commercial agreements, in the view of the broker.
Liberum added its forecasts have now been upgraded to account for over-the-counter rather than prescription status, which drives longer-term upgrades and makes for a more valuable commercial proposition.
"We expect the start of the US study, regulatory approvals in other regions and commercial deals over the coming 6-12 months to crystalise further value and drive a re-rating."
Shares rose 32% to 59.6p.