Panmure maintains 'buy' on EKF Diagnostics

6th Jul 2016 10:44

(ShareCast News) - EKF Diagnostics shares rose on Wednesday as Panmure Gordon reiterated a 'buy' rating and target price of 14p after an upbeat trading update.In a first half trading update, EKF said sales and adjusted EBITDA are ahead of market expectations for the six months ended 30 June 2016.The AIM-listed healthcare company said it expects to achieve the high end of its targeted range of EBITDA for the current year of between £3.5m and £4.0m. Revenue for the first half is forecast to exceed £16.5m. Panmure upgraded its full year 2016 estimates by 5% for revenues and 19% for EBITDA."A positive first half trading update from EKF shows that following the reorganisation and refocusing of the business around the turn of the year, growth has resumed across both the Point of Care and Central Lab divisions.""EKF should also benefit from weaker Sterling, with only limited sales into the UK and the majority of revenues (and costs) in USD and Euro. We expect this to give the opportunity for further upgrades in H2 2016, however, may result in lower reported growth going in to our more cautious 2017 estimates."Shares jumped 9.39% to 12.99p at 1052 BST.