Investors on the lookout for big returns for their portfolio might want to consider Telix Pharmaceuticals Ltd (ASX: TLX) shares.
That's because the team at Bell Potter believes the radiopharmaceuticals company's shares are undervalued and destined to deliver outsized returns over the next 12 months.
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What is the broker saying?
Bell Potter notes that Telix has announced the commencement of the BiPASS study, which if successful could grow its addressable market materially. It said:
TLX has commenced BiPASS (NCT07052214), a registration-enabling Phase 3 trial targeting label expansion of its PSMA-PET imaging agent for the initial diagnosis of prostate cancer. The study will evaluate the diagnostic performance of PSMA-PET as an adjunct to MRI for the detection and staging of clinically significant prostate cancer (csPCa).
If successful, the label expansion may reposition 68Ga- PSMA-11 in the landscape for prostate cancer management. The addressable market in newly diagnosed prostate cancer is estimated at 2x to 3x the current volume of PSMA PET scans annually. First Australian patients in BiPASS have been dosed. Recruitment is yet to open in the United States where TLX awaits clearance of the IND.
The good news is that data appears supportive of this expansion, which bodes well for the future of this exciting study. The broker adds:
BiPASS builds directly on a solid foundation of clinical evidence from the Phase 2 PRIMARY study, which found that compared to MRI alone, the dual modality imaging of PSMA-PET plus MRI improved both sensitivity (97% vs 83%) and NPV (91% vs 72%) – two essential indicators of test accuracy. This study and the ongoing Phase 3 PRIMARY2 trial are led by Professor Louise Emmett. The concept of biopsy free or targeted biopsy enjoys strong support from KOL's in the US and Australia.
Big potential returns
In response to the news, Bell Potter remains as bullish as ever on the radiopharmaceuticals company and is recommending it to clients.
According to the note, the broker has retained its buy rating and $23.00 price target on Telix's shares.
Based on its current share price of $16.81, this implies potential upside of 37% for investors over the next 12 months.
To put that into context, a $20,000 investment would turn into approximately $27,400 if Bell Potter is on the money with its recommendation.
Commenting on its buy rating, the broker concludes:
BiPASS represents a significant label expansion opportunity that may add ~750-800k PSMA scans to the addressable market. We believe this is yet another example of TLX innovation in prostate cancer management driving shareholder value. FY26/FY27 revenues are modestly upgraded following the recent change to revenue guidance. We maintain our Buy rating.
