Creo Medical Group PLC, AIM:CREO, is at a “significant Inflexion Point”, Cenkos Securities, its corporate broker, stated in the wake the group’s trading statement on Wednesday.
Cenkos maintained its recommendation to buy the stock and said: “With an increasing amount of core Creo device owners undertaking procedures on a daily basis, two Kamaptive licensing arrangements were announced, and there is a regional expansion of its consumables company underway.
“We expect that this progress will be reflected in financial reports starting FY23E, which provides quantitative support for our opinion about the significant value Creo Medical’s tech.”
Creo, which is a manufacturer of minimally invasive surgical endsoscopy products, stated in an update that it was looking into additional funding options to support its growth plans. Cenkos estimates that another PS15mln is needed to meet the company’s needs.
Numis, a broker who is also a partner to Creo, reiterated its 205p price target on Creo stock in a separate research note.
Numis stated that the shares trade at a mere 1.4 times enterprise value-to–sales. This, we believe, is a great value, assuming that the financing situation is resolved.
Creo’s shares traded sideways at 24.8p in late morning trade
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