Morgans initiates coverage on Tissue Repair with a Speculative Buy rating and $1.43 target price.
The newly listed drug development company is developing advanced wound-healing products for applications in the chronic wound and aftercare of cosmetic procedures.
The broker derives confidence from efficacy measures across numerous trials, and believes recent share-price weakness presents an opportunity. There’s thought to be considerable upside should regulatory clearances be achieved.
Morgans says the company will launch its cosmetic product in 2022 in Australia, where a significantly lower burden of proof is required.
Target price is $1.43.Current Price is $0.50. Difference: $0.93 – (brackets indicate current price is over target). If TRP meets the Morgans target it will return approximately 65% (excluding dividends, fees and charges – negative figures indicate an expected loss).
