BATM Advanced Communications Ltd (LSE:BVC) (LSE:BVC)’s portfolio will be attractive in the context of increased demand for COVID-19 testing, according to a City broker.
As the delta variant continues to spread, several European countries have recently seen sharp increases in COVID-19 infections and others are on growing trajectories despite good vaccination levels, analysts at Shore Capital said.
WATCH: BATM Advanced Communications present fast SD-WAN and firewall product for SOHO market
“We think testing will continue to be important as the vaccines aren’t 100% effective and because of fears over the rise of vaccine escape variants which is more likely if cases are at high levels,” they commented.
“We note that some European countries are testing the equivalent of circa 4-5% of their population each day and that there is scope for increases in other countries in the region.”
Testing will also become increasingly important in subgroups that may not be vaccinated, such as children.
In all this, BATM has produced a whole portfolio of COVID-19 diagnostic tests that ShoreCap views as “validation of its investment strategy in the Bio-Medical division”.
The tech firm is also developing multi-pathogen diagnostics which could be “significant” in the winter months as other respiratory viruses spread.
“We think the portfolio offers multiple attractive diagnostic products in the context of increasing demand for more convenient and rapid tests,” the broker noted.
Shares were changing hands for 91.38p on Wednesday morning.