Citi Initiates Coverage on Prenetics Global with “Buy” Rating, Target Price at USD8.10

It is reported that Citi initiated coverage on Prenetics Global (PRE.US) with Buy rating. Target price is at USD8.10, apply 3x P/S 2023E, at parity with the industry average.

As Covid-19 variants have continued to spread, Citi believes Covid-19 testing will remain a solid cash cow business with good margins and stable cash flows that can help fuel Prenetics’ expansion into new businesses, becoming a near-term driver. Citi expects long-term growth will be driven by personalized healthcare test products and from future M&A.

Prenetics is well-positioned to capture the growing consumer interest in personalized health testing. Citi expects Prenetics would deliver a 3-year 26% CAGR growth to 2024E in its Prevention segment, by launching new products from pipeline (e.g. Circle Medical), entering into cancer screening and IVD.

Headquartered in Hong Kong, Prenetics is a major global diagnostics and genetic testing company, with operations across 9 locations, including the United Kingdom, South Africa, India and Southeast Asia. Prenetics offers a wide portfolio of personalized healthcare tests including DTC-GT, cancer screening, and Covid-19 testing.