RE: Broker research note10 Jul 2022 13:34
We have today put out forecasts for FY June 2023 projecting modest revenue growth of 10%. However, given that Physiomics has just started the current financial year, should the current momentum continue this target could be exceeded. In our opinion, the 54% decline in the share price year to date does not reflect the underlying progress within the business.
The FY 23E revenue multiple now stands at sub 3x which we do not believe is demanding. Physiomics is not commanding the double-digit revenue multiples of Simulations Plus (19.5x 22E), Schrodinger (12.4x 22E) and Certara (10.1x 22E), but given its competitive and differentiated solutions, increasing industry and client interest, Physiomics could significantly outperform in percentage growth terms.