Analysts at Liberum Capital have repeated a 'buy' rating and 210p price target on SourceBio International PLC after the firm's H1 2022 results which they said are "strong and supportive" of their investment thesis.
In a note to clients, the analysts said: "While earnings were well-flagged at August’s trading update, the Group now moves into H2 in a strong position with buoyant growth prospects in its Healthcare Diagnostics and Genomics businesses, materially better quality income, a more streamlined cost base and a healthy £15.2m net cash position (pre-IFRS16)."
They added: "Internal capacity continues to build to meet rising sales volume in the cellular pathology business and we have greater confidence in our full-year expectations for the core divisions."
The Liberum analysts noted that SourceBio shares trade on an undemanding 8.8 times 2023 EV/EBITDA, 10-20% below UK healthcare service peers.
They concluded: "As the track record extends, expectations are met (if not exceeded) and investor awareness grows, we expect this discount to close."
In early afternoon trading, shares in SourceBio were 2% higher at 125p.