Vitrafy Life Sciences Ltd (ASX: VFY) shares have been strong performers this year.
During this time, the ASX stock has risen over 60%.
But if you thought you were late to the party, think again.
That's because Bell Potter believes the life sciences company's shares could continue to rise over the next 12 months.
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What is this ASX stock?
Vitrafy is aiming to become a global leader in cryopreservation by significantly improving cell survival of biological materials.
The ASX stock has designed and developed an innovative solution for the advancement of cryopreservation which includes smart devices, a quality management software platform, and smart packaging solutions.
Bell Potter highlights that after 18 months as a listed company, Vitrafy is approaching an inflection point. It said:
It has been c.18 months since the IPO and VFY are now approaching the point where commercial revenues are within reach. The final report on the Phase II USAISR study is due to be released in 4Q26, with an understanding that the study has been successful and passed regulatory standards.
An update on commercial activity with USAISR is expected in 1H27. The market would be hoping for a final commercial agreement. This collaboration is understood to have created material inbound interest from the civilian blood products sector and follows a recent end-of-life announcement for a legacy technology. No details were provided but this event could be a catalyst for demand for VFY's liquid nitrogen free cryopreservation technology.
Big potential returns
According to the note, Bell Potter has retained its speculative buy rating on the ASX stock with a significantly improved price target of $3.00 (from $2.25).
Based on its current share price of $2.10, this implies potential upside of 42% for investors over the next 12 months.
While Bell Potter still has a speculative rating on the stock, it notes that it has removed a 10% risk rating in response to operational progress. It concludes:
We judge the progress VFY has made in blood products and animal production to be sufficient to remove the 10% risk rating we had applied to our revenue forecasts, lifting our FY27e/FY28e revenue estimates by c.11%. Subsequently, this lifts our DCF valuation by c.33% to $3.00/sh.
Since the post IPO low of $1.08 a year ago, VFY's share price has effectively doubled as confidence toward commercialisation has increased. Key catalysts relate to 1) securing commercial arrangements with USAISR and 2) FDA registration for the Guardion cryopreservation device.
