Morgans upgradePolynovo Ltd (ASX: PNV)Another ASX growth share...

Morgans upgrade

Polynovo Ltd (ASX: PNV)

Another ASX growth share that could deliver market-beating returns for investors is PolyNovo.

It is a medical technology company aiming to simplify management of acute complex wounds with its NovoSorb BTM product. It is a dermal scaffold for the regeneration of the dermis when lost through extensive surgery, trauma, or burn.

Morgans is very positive on the company. Though, it concedes that it is only suitable for investors with a high tolerance for risk. It said:

PNV has provided a trading update for the 9 months ended March 2025, noting sales growth of 31.1%. We are confident our FY25 forecast can be achieved and this rate of growth will continue in 4Q25.

PNV has made progress on the regulatory front with a number of approvals achieved during the quarter and importantly the data for the full thickness burns trial is shortly to be locked and then submitted to the FDA to commence the approval process (expected to take six months). A search for a new CEO is underway and we view this as an important step for leadership stability. Given the positive sales momentum we have upgraded our recommendation to Speculative Buy (from Hold).

PNV has provided a trading update for the 9 months ended March 2025, noting sales growth of 31.1%. We are confident our FY25 forecast can be achieved and this rate of growth will continue in 4Q25.

PNV has made progress on the regulatory front with a number of approvals achieved during the quarter and importantly the data for the full thickness burns trial is shortly to be locked and then submitted to the FDA to commence the approval process (expected to take six months). A search for a new CEO is underway and we view this as an important step for leadership stability. Given the positive sales momentum we have upgraded our recommendation to Speculative Buy (from Hold).
Morgans has a speculative buy rating and $1.69 price target. Based on its current share price of $1.29, this implies potential upside of 31% for investors over the next 12 months.