Sometimes investors get very good feelings about businesses & management teams.
In fact, when I first spoke to Belluscura (BELL ) CEO Bob Rauker & CFO Tony Dyer back in May’21 at their 45p/share £17.5m IPO. I thought the stock was far too cheap, considering the quality of the technology, enormous runway ahead, unmet medical need & latent demand for the firm’s best-in-class portable oxygen concentrators (X-PLO2R).
Adding too at the time, that if things went to plan, the shares could readily be worth 180p–220p by 2026.
Well it appears things are accelerating even faster than anticipated. With Belluscura today lifting its targets for this year & next, thanks to “demand significantly exceeding expectations”. Alongside increasing production capacity at its healthcare grade, US contract manufacturer.
Accordingly, house broker Dowgate Capital Limited have upgraded their unit sales estimates to 300, 3k, 13k, 24k & 50k respectively for the periods 2021-25. In turn, driving up revenues & adjusted EBITDA to $111m & $34m by 2025, in addition to raising their price target to 150p/share vs 135p before.
Bob Rauker commenting: "Initial demand for the X-PLO2R has been very strong. The recent addition of a 5th distributor in North America gives us confidence to substantially expand our manufacturing capacity to meet demand in the coming years. With the Company now poised to exceed the manufacturing and sales targets set at IPO, we can look to the future with confidence."