EL&C Baillieu First |PolyNovo (PNV) | Trading update
|EL&C Baillieu First
10 July 2020
|Rating*:||Hold||Price Target*:||$2.85||Analyst:||Nick Caley
+61 3 9602 9283
|*Note: Rating and Price Target recorded at pre-announcement levels as detailed in our research report dated 29 May 2020.|
|· Trading update: PNV has released a trading update for FY20 with the following highlights: 1) FY20 sales are expected to at least double FY19; 2) US sales for June 2020 cited as a record; 3) first sales an surgical procedures in the UK have been completed; and 4) numerous procedures using BTM have now been completed in Germany, Austria and Switzerland.
· Our view: Trading update appears to be broadly in line with our expectations – at a minimum a doubling of FY19 sales would equate to A$18.6 – we forecast A$20.6m which included A$2m in sales in Europe which may prove slightly optimistic. Overall. It is very encouraging to see PNV win new customers and sales in the US and Europe despite the likely strain on hospitals due to COVID-19. At the current share price the stock is starting to look interesting again relative to our price target.
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|E.L. & C. Baillieu Limited|
|ABN 74 006 519 393||Level 22, 35 Collins Street|
|AFS Licence No. 245421||Melbourne VIC 3000 Australia|
|Direct +61 3 9602 9283||Mobile +61 4 1387 2324|
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