Telix Pharmaceuticals Ltd (ASX: TLX) shares are up approximately 75% over the last 12 months.
Investors have been buying the ASX 200 biotech stock after it reported explosive growth in FY 2023 last month.
The company delivered a 214% increase in total revenue to $502.5 million thanks to strong demand for its Illuccix product.
Also growing rapidly was the company's adjusted EBITDA, which more than doubled to $58.4 million from a loss of $67.8 million a year earlier.
The good news is that the team at Bell Potter believe that its strong growth can continue. For example, the broker is forecasting a 45% jump in EBITDA to $84.9 million in FY 2024.
And while Bell Potter then expects a decline in EBITDA to $68.7 million in FY 2025 due to an increase in costs, it believes the ASX 200 biotech stock's EBITDA will then rebound massively the following year to a whopping $211.1 million.
Is this ASX 200 biotech stock good value?
Despite its strong gain over the past 12 months, Bell Potter still sees plenty of value in the company's shares.
This morning, it has retained its buy rating with an improved price target of $14.50. This implies potential upside of 24% for investors over the next 12 months.
As well as being impressed with the ASX 200 biotech stock's performance in FY 2023, the broker sees big positives from the announcement of plans to acquire ARTMS. It is a company specialising in the physics, chemistry and materials science of cyclotron produced radionuclides. Bell Potter commented:
The acquisition is crucial for the supply of 89Z and the pending roll out of Zircaix for renal cancer imaging. TLX is validating multiple production locations for 89Zr in the US using the ARTMS core technology. The company also owns significant quantities of ultra pure 89Y being the raw material for production of 89Zr.
We estimate the yield is ~50x that from a Gallium generator and will potentially allow for greater dosing flexibility and vastly reduce the cost of goods for at least a portion of the Illuccix doses sold. With this in mind the company intends to amend the NDA for Illuccix to support ARTMS QIS cyclotron production.
