Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF) 'house' broker finnCap says news that the company expects to restart production at its UK manufacturing site on 14 November is "welcome news".
However, the City broker's analysts noted that the circa 7-week voluntary shut-down falls in the peak production months in preparation for dosing patients ahead of the pollen season in the spring.
Management has indicated that it expects revenues to be circa 13%-18% lower than full-year 2023 market consensus of £80mln (ie. £10mln-£14mln).
The finnCap analysts said: "While its competitors will no doubt take advantage of this hiatus, we think it will be a FY 2023 event only and, to that extent, leave FY 2024 forecasts unchanged, helped by the prospect of a positive Phase III Grass MATAMPL trial outcome in H2 CY 2023 ensuring that doctors will want to use this product."
The analysts said it has adjusted its full-year 2023 forecasts for Allergy Therapeutics accordingly and reduced their target price for the stock to 50p, which also reflects the reduced financial flexibility.