RE: SP Excitements!7 Sep 2020 15:09
Just to be clear, from my side. I totally expect the valuation of the business based on not only successful sales of the fastest and most simple Covid19 test in the world which will initially give not only the accuracy needed to give POC testing the safest indication outside a lab of Covid19 presence will be determined by UK, EU and Global sales. The production capacity will determine what can be sold and I expect sales to exceed production for months ahead. In this case we can be sure to expect sales in excess of 5 million per week and growing as the world realises how effective this test is and how simple. If we have sufficient manufacturing capacity from BBI and Abingdon to meet UK demand, but we will surely need manufacturing partners in Europe, Asia, the US and South America. Global sales may well run into billions per month. If Avacta can ensure they can liberate profits of £1 billion per year which is more than possible from sales then a market cap of 2 to 3 billion is not off reality given all the other developments. So £8 to £12 is a good target to have for early 2021. Sure it could be way higher than this or lower depending on other developments in the world.
One point to note, if Avacta to manage to pursue a joint listing especially on the NASDAQ which will definitely require a move in to the FTSE, with advances on other projects the value could increase dramatically beyond my above pointers.
There are lots of if's and but's. But no-one can really give a proper valuation. Note even the brokers have clear valuation at this point.
But I am looking for £8 as my current target. £20 remains a strong possibility with successful AVA6000 clinical trials.
I'll leave you to discuss!
Cheers, Rich
Sign In
Follow the stocks
