The market may be a sea of red today but that hasn't stopped the PolyNovo Ltd (ASX: PNV) share price from storming higher.
In afternoon trade, the medical device company's shares are up over 5% to $2.22.
Why is the PolyNovo share price charging higher?
Today's gain by the PolyNovo share price is a bit of a mystery given that there's been no news out of the company since its full year results last month.
However, it is worth noting that its shares hit a 52-week low of $1.99 at the end of last week.
Some investors may believe PolyNovo's shares were oversold and were trading at an attractive level.
Are the company's shares good value?
One leading broker that is likely to see the weakness in the PolyNovo share price as a buying opportunity is Macquarie Group Ltd (ASX: MQG).
Last week the broker retained its outperform rating, albeit with a slightly trimmed price target of $2.70.
Based on the current PolyNovo share price, this implies potential upside of almost 22% over the next 12 months.
What did the broker say?
According to the note, PolyNovo's full year result was a touch softer than it was expecting. However, it was encouraged by its exit rates and sees this as a positive for FY 2022.
Outside this, the broker believes PolyNovo is well-placed for growth over the long term thanks to the quality of its NovoSorb technology.
It also highlights that the company is actively looking to expand the technology's use beyond treating burns and into other indications such as hernia repair. This could significantly increase its overall market opportunity if successful.
All in all, the broker appears to believe the risk/reward on offer with its shares is favourable at the current level and has retained its positive rating.
