We assess Cellestis as a BUY with a spot valuation of $4.49 and a 12 month priceBioShares were less than impressed
target of $5.05.
.. based on current sales growth rates and the company’s capitalisation, the stock appears overvalued.If we assume the target of 30% market penetration by 2020 (ex Lodge) and allow that the market is 50M tests pa (ex Lodge) and the revenue for each test is $A17 (ex forrestgump) we can calculate that a sales growth of ~27.7% pa from 2007 should meet that target
Bioshares recommendation: Sell
By comparing the projected with the current sales growth we can see that current sales is well ahead of the projection.
The recent HY result, of a sales growth of 26%, confirms that trend
