Open Orphan PLC (AIM:ORPH, OTC:OPORF)’s outlook continues to improve says broker finnCap, which today reiterated its 44p share target after the award of £5mln contract for a flu jab challenge study.
That means Open Orphan has now signed contracts that are worth more than 90% of predicted 2022 revenues, said the broker, and with further studies targeted to close in the near future, this puts it in a very strong position with high revenue visibility going into 2022.
“Stripping out the value of its non-core assets (60mln or 9p per share) and cash (17mln or 2.5p) implies that the core business is currently valued at a third of the value of its peer group.
“With the prospect of further contract wins, the scope for upgrades in 2022 remains high, and the long-term outlook for sustainable growth, given the industry dynamics, remains encouraging,” finnCap concluded.
Shares rose 9% today to 23p.
