NetScientific PLC (LON:NSI) should break even in 2023, according to WH Ireland, which values the shares at 135p each – more than double their current price.
The City broker pointed to the last fair value calculation for the assets held by the investment company, which specialises in life sciences and technology.
This rose to £21.1mln (from £11mln last year) and is double the company’s current market capitalisation. The ‘unrisked’ worth if its shareholding of PDS Biotech is worth £7.9mln alone, WHI pointed out.
In the past year, NetScientific has been placed on a firmer financial footing with a £2.3mln fundraiser that brought in a supportive new shareholder base.
Alongside the financial refresh was the purchase of EMV Capital, which added another dimension to NetScientific.
It increased the number of portfolio companies from nine to 17 businesses; it also brought in fee-earning transaction advisory expertise along with the ability to syndicate financings for investee businesses.
In a note to clients, WHI said: “Notwithstanding the need to manage near-term cashflow requirements, across an increasingly diversified portfolio, a number of catalysts exist that could yield significant upside potential for the shares.”