Aroa Biosurgery's FY24 revenue was in line with guidance though the EBITDA loss of -NZ$3.1m was higher than the -NZ$2.1m expected by Morgans. Myriad sales continue to grow and be a key focus for the group, note the analysts.

Importantly, according to the broker, management provided FY25 guidance for revenue of NZ$80-87m and normalised EBITDA of NZ$2-6m.

The Add rating is unchanged and the broker's target falls to $1.05 from $1.20 due to lower earnings forecasts (on average by -18%) across the forecast period reflecting a higher cost base.

Sector: Pharmaceuticals, Biotechnology & Life Sciences.

Target price is $1.05.Current Price is $0.50. Difference: $0.56 - (brackets indicate current price is over target). If ARX meets the Morgans target it will return approximately 53% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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