Liberum Capital sees close to 80% upside to the current price for Ilika PLC (AIM:IKA, OTCQX:ILIKF) as the company advances its solid-state battery products.
The stockbroker’s ‘buy’ recommendation comes with a 245p price target (current price: 138p).
Ilika’s solid-state batteries are a key enabler for companies seeking to develop a variety of smarter, smaller and more responsive implantable medical devices, analyst Adam Collins said in a note.
Collins highlighted: “Ilika has seen enquiries from 16 medical device developers and will have manufacturing capacity for c300,000 devices per annum before licensing.
“The potential is significant given there are 2 million knee/hip implants per annum and c30mln fatalities from chronic heart disease.”
Ilika has few competitors, the analyst noted, with three competitors in the micro battery sector which Collins says have a different focus whereas existing medical battery makers are yet to develop solid-state capabilities.