The ASX healthcare stock in this article has been on fire over the past 12 months.
During this time, its shares have rallied 60% higher. As a comparison, the ASX 200 index is up 9.7% over the same period.
The good news is that analysts at Bell Potter believe that this market-beating run can continue and are tipping its shares to continue their ascent.
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Which ASX healthcare stock?
The stock in question is Telix Pharmaceuticals Ltd (ASX: TLX).
It is a radiopharmaceuticals company developing a portfolio of clinical and commercial stage products that aim to address significant unmet medical needs in oncology and rare diseases.
Its lead product is imaging product Illuccix. The gallium-68 (68Ga) gozetotide injection has been approved by the U.S. Food and Drug Administration (FDA), the Australian Therapeutic Goods Administration (TGA), and Health Canada.
Illuccix has been generating huge revenues since it was approved. In fact, demand has been so strong that management upgraded its FY 2024 revenue guidance on Thursday.
Telix was previously guiding to revenue of US$445 million to US$465 million for FY 2024. However, the ASX healthcare stock now expects revenue to be in the range of US$490 million to US$510 million, which represents an increase of approximately 48% to 54% year on year.
Bullish broker
Analysts at Bell Potter have responded positively to the company's update. They said:
TLX has provided a Q2 2024 revenue and business highlights statement and guidance upgrade. Revenues for the quarter were $189m representing an 8% increase over the prior quarter and in line with our expectation. 1H24 revenues of ~$364m increased by 65% vs pcp. FY24 revenue guidance was upgraded to the new range of $745m- $776m representing a 10% increase in the midpoint compared to previous guidance. Guidance for a 40-50% increase in FY24 R&D expense was re-affirmed.
In light of the above, the broker reaffirmed its buy rating and lifted its price target to $22.60 (from $19.00). Based on the current Telix share price of $19.47, this implies potential upside of 16% for the ASX healthcare stock.
Its analysts believe that a potential regulatory approval could be the catalyst to driving its shares higher. The broker concludes:
Earnings adjustments in FY24 are not material. FY25/26 EPS increased by 17% and 21% respectively. Following these adjustments price target is raised to $22.60 from $19.00. In the current environment where the appetite for growth assets is back in favour, we believe the likely approval for Zircaix in early CY25 will become the major catalyst to propel the stock towards our revised target price.
