Telix Pharmaceuticals shares surge as Citi starts coverage with ‘buy’ rating

The news: Shares in Telix Pharmaceuticals lifted in morning trade after the Citi analysts initiated coverage of the stock with a ‘buy’ recommendation, although they gave it a high risk rating.

The numbers: At 10:49am AEST, shares in Telix were up 7.1% to $14.62. Citi analysts have set a target price of $34 per share.

The context: In a research note, the Citi analysts said the stock is priced as if Telix’s first diagnostic Illuccix, a prostate cancer imaging drug, “is the only asset of value”. They also believe that Telix’s “base business will be bigger than market thinks”.

What they said: “We see total diagnostics worth $25 per share including new products, a pipeline of drugs worth $10 per share, and multiple catalysts over next 12 months,” the Citi research note reads.