Telix Pharmaceuticals Ltd (ASX: TLX) shares were on form on Thursday.
The ASX 200 biotech stock raced 7% higher to end the session at $18.10.
This was driven by the release of its half year results for FY 2025.
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Where next for Telix shares?
The good news is that analysts at Bell Potter believe that the company's shares can continue climbing from here.
Though, before we get into that, let's see what the broker made of Telix's results.
Bell Potter notes that its results were largely pre-released, so there weren't many surprises. It commented:
Revenue of $390m had been pre released and represents a 63% increase vs pcp inclusive of acquisitions. Excluding the acquisition, organic revenue growth was ~27%. The inclusion of the lower margin manufacturing revenues decreased the overall gross margin to 53% from ~64%. Margins on Illuccix were preserved at ~64% as was expected, however, we believe it likely there will be some erosion in Q3 following the end of pass through.
The broker was pleased to see that management has held firm with its guidance for FY 2025. It also highlights that there are a couple of potential catalysts to watch before then. It adds:
The company has maintained revenue guidance of $770m-$800m before the impact of any of new product revenues. A decision on Zircaix approval is scheduled for 27 August. We understand the product has been well utilised by urologist in the expanded access program available in the US. If approved, product launch is likely in 1Q26. No further update on SEC investigation. Pixclara NDA due for resubmission by November, hence potentially on market in 2H26.
Big returns
As mentioned at the top, Bell Potter sees potential for Telix shares to race higher from where they currently trade.
According to the note, the broker has put a buy rating and $30.00 price target on them. Based on its current share price, this implies potential upside of approximately 66% over the next 12 months.
Commenting on its buy recommendation, the broker said:
FY25 group EBITDA is reduced by ~$20m due to GP margin adjustment. Long dated revenues from prostate therapy sales are pushed back due to slower than anticipated trial recruitment, accordingly DCF model valuation is reduced by 10% to revised target price of $30 (from $33). Overwhelming sense was that there was no further bad news or delays and revenues from new products are getting very close. Long term strategy for growth remains in place. Maintain Buy rating.
