RE: Priced for perfection?14 Mar 2021 14:36
Novacyt has absolutely killed it on Covid testing. 315m revenue for 2020 and probably generated £200m in q1 2021. Market cap - 475m. The market has seen that these revenues are, to a large extent, a one off windfall that will significantly tail off this year.
Now - Avacta is valued at 30-40% higher, so you are looking at a requirement to generate far higher annual revenue than Novacyt over the next 12-18 months. If you think Avacta will generate £500m plus revenue on 60-80 % profit margin, then buy and hold.