While Medlab Clinical has witnessed some positives in a recent NanaBis study, a heavily dilutive capital raising had become necessary and this has led Morgans to lower its price target to $18.84 from $44.53.
The broker acknowledges the positives, but also points out speculative stocks haven't exactly been in favour over the year past or so.
Medlab Clinical still needs to pass a number of hurdles before investors' attention is ready to return, the broker believes. Morgans is happy to stick with a wait and see approach in the meantime.
Speculative Buy.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $18.84.Current Price is $7.16. Difference: $11.68 - (brackets indicate current price is over target). If MDC meets the Morgans target it will return approximately 62% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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