Baillieu Research released a report yesterday. In short they...

Baillieu Research released a report yesterday.

In short they maintain a "Hold", but have upgraded their price target from $1.36 to $1.50. They continue to exclude any revenue from the hernia repair product in their forecasts despite the plans for it to be launched next year. A conservative approach indeed.

Investment view: HOLD maintained. Revised DCF valuation (prev. A$1.36) and price target (prev. A$1.35) of A$1.50 – we have included FY22 forecasts in our valuation which has been rolled forward. The absence of a BUY call is solely valuation related. Whilst investors should consider the current share price versus their respective entry price, we view PNV as a keeper given: 1) BTM commercialisation has been franked; 2) market disruption is likely to attract M&A; 3) heavy commitments for R&D/trials continue to be underwritten by third party sponsors/partners; 4) proximity of the mid-2020 launch of the hernia repair application, which does not require further regulatory approval in the US; and 5) other product applications, which are in larger addressable markets, are yet to be considered in our forecasts and valuation.