SourceBio International is well placed to benefit from the latest surge in PCR tests for Covid sparked by the Omicron variant, according to analysts at Liberum.
PCR testing volume in the UK has steadily grown in recent months with the rolling average weekly PCR tests conducted of 454,000 now the second-highest since the pandemic began, said the broker.
UK travel requirements mean that all arrivals must complete a Day 2 PCR test through an approved provider, a list that includes SourceBio.
In October, SourceBio’s PCR test was endorsed by Which? as the best provider of affordable Day 2 testing and ‘the most reliable choice for consumers.
The reintroduction of a mandatory Day 8 PCR test for UK arrival is also said to be under consideration by the government.
With the base business also now trading at pre-pandemic levels, Lberum believes SourceBio should meet forecasts for revenues this year of £86.5mln and underlying profits [EBITDA] of £21mln with potential to do even better in 2022 if more testing becomes the norm.
An update on trading is expected in early 2022 and Liberum sees potential for forecasts to be raised and has a buy rating and target price of 190p.
Shares rose 3.5% to 147.5p.