Investment returns of several multiples don't come along very often, but the analyst team at Morgans thinks they've found a company which could deliver just that.
Morgans has a speculative buy rating on Epiminder Ltd (ASX: EPI), and a hefty share price target which we'll get to shortly.
First let's have a look at why they like the company so much.
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Strong clinical trial progress
Epiminder is in the process of commercialising its Minder system, which is an implantable, minimally invasive EEG monitoring device designed to aid in the treatment of epileptic seizures.
The company listed on the ASX late last year, and the stock is down 79.3% since then.
Epiminder recently published a trading update which announced that the 50th person had been enrolled in its DETECT clinical study in the US.
The milestone was ahead of schedule and the company added that 20 sites in the US were now actively enrolling patients.
The company said:
DETECT is a prospective, randomised, controlled, blinded, multi-centre US clinical study evaluating the FDA-approved Minder System as a tool to improve clinical decision-making for patients with epilepsy following an inconclusive prolonged electroencephalographic (EEG) monitoring assessment.
Epiminider Chief Executive Officer Rohan Hoare said the clinical study had strong momentum.
He added:
With 20 leading epilepsy centres now actively enrolling, we are seeing genuine, demonstrated adoption of the Minder System in a clinical setting. The calibre of sites participating and the pace at which they are engaging their patient populations reflects the unmet need that Minder is designed to address. We remain on track to enrol 210 patients by the end of 1H CY2027, and we are confident in the foundation we have built to get there.
Shares in this ASX biotech looking cheap
In their research note, Morgans said that the company's FY26 operational progress was strong.
The broker noted the company had $75 million in cash and no debt at the end of FY26, and, with management expecting $28-$31 million at the end of FY27 before R&D rebates, the company was well funded into CY28.
Morgans said regarding the company:
EPI combines validated clinical evidence with a de-risked commercial plan and strong partners. The platform offers meaningful upside through new indications and markets, while upcoming catalysts offset early commercialisation risks. We use a discounted cash flow method to value EPI at $2.23.
This compares with the current share price of just 31 cents, meaning an investment would return more than 600% if Morgans' price target is achieved. Epiminder has a market capitalisation of $58.6 million.
