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Investing.com - Deutsche Bank has raised its price target on Oxford Nanopore (LON:ONT) (OTC:ONTTF) to GBP2.10 from GBP1.90 while maintaining a Buy rating on the stock.
The firm notes that while the market may have hoped for an upgrade at the interim results, management appears to be taking a prudent approach, with fiscal year 2025 numbers appearing "de-risked" according to Deutsche Bank’s analysis.
Deutsche Bank describes Oxford Nanopore as a "UK champion with disruptive technology" that is growing well ahead of its peers, while showing sequential reduction in EBITDA losses and improved cash flow.
The shares currently trade at approximately 6 times enterprise value to sales for fiscal year 2025 estimates, which is ahead of sequencing peers at 4-5 times.
Deutsche Bank justifies the premium valuation by citing Oxford Nanopore’s "superior growth potential" compared to industry peers, supporting the firm’s continued Buy recommendation on the stock.
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