Citi has commenced coverage of Telix Pharmaceuticals (ASX:TLX), assigning a ‘buy’ rating alongside a ‘high risk’ designation. The broker has set a target share price of $34 AUD for the Australian Securities Exchange (ASX) listing and $US22 for the dual-listed entity. Telix Pharmaceuticals is a global biopharmaceutical company focused on developing diagnostic and therapeutic products using Molecularly Targeted Radiation (MTR) technology. The company aims to improve outcomes for patients with cancer and rare diseases.
Citi anticipates that Telix’s fundamental business operations will surpass current market expectations. The firm also identified the prostate cancer drug TLX591 as possessing the potential to become a blockbuster product, significantly contributing to the company’s future revenue streams. Analyst Laura Sutcliffe from Citi noted the considerable upside potential across various projects within Telix’s portfolio.
According to Citi’s analysis, successful execution of these projects could potentially drive the total valuation to $71 AUD per share and $US46 per share. Sutcliffe added that there is scope for even more optimistic assumptions, suggesting that blue-sky estimates could substantially exceed the firm’s current calculations. This reflects a positive outlook on Telix’s growth prospects and the potential for significant value appreciation.
This initial coverage from Citi highlights the firm’s confidence in Telix Pharmaceuticals’ strategic direction and the potential impact of its pipeline products. Investors will be closely monitoring Telix’s progress as it continues to develop and commercialise its cancer diagnostic and therapeutic solutions.
