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OPINION

Cleaning up

Cleaning up
October 13, 2015
Cleaning up

In fact, analysts Michael Cabaday and Keith Redpath at broking house finnCap raised their target price (from 90p to 110p) and fiscal 2016 pre-tax profit estimates by 12 per cent to £2.9m post the announcement. But that only brings the brokerage into line with what I had expected before the announcement and I feel they are still behind the curve. A more meaningful analysis comes from analysts Gilbert Ellacombe and Paul Hill of research firm Equity Development who lifted their fair value target price from 110p to 135p based on solid valuation techniques.

I am inclined to side with them for a number of reasons, implying Tristel's share price has further to run even after producing a total return of 100 per cent including dividends since I began coverage ('Clean up on superbugs', 6 May 2014). That's because there is potential for sales momentum - underlying revenues increased by 13.8 per cent to £15.3m in the 12 months to end June 2015 - to accelerate as the company taps into further overseas markets.

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