Next Science Limited

NXS Details

This report is an updated version of the report published on 09 June 2022 at 3:46 PM GMT

Insights of Q1 2022: Next Science Limited (ASX: NXS) is engaged in commercialising and developing its Xbio technology. The below picture provides an overview of Q1FY22:

Q1FY22 Summary (Source: Analysis by Kalkine Group)

AGM Summary: The following picture provides an idea of AGM highlights:

AGM Updates (Source: Analysis by Kalkine Group)

Key Risks: NXS’s business is exposed to risks arising from failure in clinical trials. In addition, the company’s business could be impacted by the rising market share of its peers in the industry.

Outlook: NXS would be focused on driving sales growth on the back of the continued growth of XPERIENCE^TM hospital and surgeon users, enlargement of the BLASTX^TM installed base with an increase in dedicated sales headcount. Moreover, the launch of TridentX^TM by Convatec in the US wound care market in Q2 would also support future growth.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Source: Analysis by Kalkine Group

*% Premium/(Discount) is based on our assessment of the company’s NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

Stock Recommendation: The stock of NXS is trading near its 52-week low level of $0.700, offering a decent opportunity for accumulation. The stock has been corrected by ~12.94% in the past month. The stock has been valued using an EV/Sales multiple-based illustrative relative valuation and arrived at a target price of low double-digit upside (in % terms). The company can trade at a slight discount to its peers, considering the COVID-19 uncertainties and negative net margins, etc. For valuation, peers such as PolyNovo Ltd (ASX: PNV), Anteris Technologies Ltd (ASX: AVR), Cochlear Ltd (ASX: COH), and others have been considered. Considering the expected upside in valuation, growing revenue, decent addressable market, optimistic long-term outlook, current trading levels, and key risks associated with the business, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $0.735, as on 09 June 2022, 10:35 AM (GMT+10), Sydney, Eastern Australia.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

NXS Daily Technical Chart, Data Source: REFINITIV 

MedAdvisor Limited

MDR Details

Insights of Q3FY22: MedAdvisor Limited (ASX: MDR) is a MedTech company which provides a world-class medication management platform that empowers patients to manage their medication and improve adherence more simply. The below picture gives an overview of the company’s performance in Q3FY22:

Quarterly Summary (Source: Analysis by Kalkine Group)

Key Risks: MDR’s operational and financial performance could be impacted by the stiff competition in the market, which could lead to customer loss.  In addition, the company is exposed to a more complex regulatory environment; any failure in the compliances could lead the business to fines, penalties, etc.

Outlook: For FY22, the company anticipates reporting revenue in the range of $72 million to $74 million and a gross margin of between 53-54%. Moreover, MDR remains focused on the digitalisation of the pharmacy network in the US in the near future.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Source: Analysis by Kalkine Group

*% Premium/(Discount) is based on our assessment of the company’s NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

Stock Recommendation: The stock of MDR is trading near its 52-week low level of $0.160, offering a decent opportunity for accumulation. The stock has been corrected by ~10.81% in the past month. The stock has been valued using an EV/Sales multiple-based illustrative relative valuation and arrived at a target price of low double-digit upside (in % terms). The company can trade at a slight discount to its peers, considering the COVID-19 uncertainties and negative margins, etc. For the purpose of valuation, peers such as Doctor Care Anywhere Group PLC (ASX: DOC), Beamtree Holdings Ltd (ASX: BMT), ImExHS Ltd (ASX: IME), and others have been considered. Considering the expected upside in valuation, rising customer receipts, progress in Australian business, decent outlook, current trading levels, and key risks associated with the business, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $0.165, as on 09 June 2022, 11:15 AM (GMT+10), Sydney, Eastern Australia.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

MDR Daily Technical Chart, Data Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined: -

Support: A level where-in stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices

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