Telix shares rise as Wilsons Advisory hikes target price
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The news: Shares in Telix Pharmaceuticals lifted on the ASX after Wilsons Advisory reiterated its 'overweight' rating on the stock and hiked its 12-month target price.
The numbers: Telix shares added 1.8% to reach $20 by 1:50pm AEST.
Wilsons upgraded its target price from $19.52 to $22.11.
The analysts noted that the upgrade was driven by the outlook for Telix's prostate cancer imaging product ILLUCCIX, and anticipated pricing reform from January 2025.
Wilsons increased its revenue and EBITDA estimates by 8% to 17% and 53% to 75% respectively, with changes to FY24 estimates made in response to Telix's Q2 revenue growth and revised full-year revenue guidance.
The context: The analysts noted that they see Telix's inclusion in the ASX 100 as a positive, with "fortuitous" timing as the company's ILLUCCIX business develops new momentum, new revenue streams emerge, and its therapeutic pipeline grows in value.
What they said: Wilsons analysts said: "Whilst a phenomenal success for 'small cap' managers since IPO; [Telix] explodes on to the 'larger cap' scene this month with a lot of momentum but relatively small index weight."
The source: Wilsons Advisory research
