- GSS’s share price could almost triple, according to Taylor Collison
- Taylor also believes Good Drinks could outperform
- Shaw and Partners says it has a target price on Zip that’s 4x current share price
Genetic Signatures to nearly tripleTaylor Collison has maintained its Outperform recommendation on
Genetic Signatures (ASX: GSS), with a price target that could almost triple.
The broker has a price target on GSS of
$2.21 share price (vs current price of $0.80).
GSS put in a solid sales performance in H123, beating the broker’s forecasts, despite delays in the FDA submission for clearance of the Enteric Protozoan test kit in the US.
Taylor says this FDA clearance remains key for the company, with approval now expected before the end of April vs AGM guidance targeting December.
The FDA usually aims to complete review of 510(k) applications for clearance to market medical devices within 90 days of receipt.
But given that GSS has needed to develop and validate traditional 4-base comparison PCR tests for 5 of the 8 targets in the Enteric Protozoan test kit, Taylor expects the FDA to have a number of questions.
“While the delay is disappointing, it does not diminish the US market opportunity for GSS,” said the note from Taylor Collison.
“We conservatively assume that the FDA review will take the full allowance of 270 calendar days, with the FDA decision regarding marketing clearance being announced in Q1 CY24, with the commercial launch soon afterwards.
“We have therefore revised our forecasts, and now assume potential FDA clearance and commercial launch in Q1 of calendar year 2024.”
Taylor says it also forecasts US sales for GSS of US$10m in FY25, and around US$60m in FY28.
(20min delay)