PolyNovo shares rise as Morgans flags 'buying opportunity'
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The news: PolyNovo shares climbed on the ASX as Morgans said the medical devices manufacturer's current share price weakness was a buying opportunity for investors.
The numbers: PolyNovo shares were up 1.5% to $2.07 by 3pm AEDT having fallen 24% since 30 September. The wider marker was down 0.46%.
Morgans retained its 'add' rating and $2.85 target price on the stock. Its analysts said they are confident that the company can achieve consensus forecasts for 29% revenue growth in FY25, with growth expected to stay above 20% into FY26 and FY27, driven by expansion in new regions such as India.
The context: Morgans analysts said the lack of a trading update at PolyNovo's recent annual general meeting likely did not help the company's share price. However, they noted that regional expansions, additional case uses in trauma, and the construction of a third manufacturing facility will support growth over the next three years.
Melbourne-based PolyNovo produces products aimed at simplifying management of acute complex wounds. Its product NovoSorb BTM is a wound dressing used for the treatment of full-thickness wounds and burns where the dermal structure has been lost to trauma or damaged requiring surgical removal.
The source: Morgans research
