ABL Diagnostics Targets €12.2M in Revenue by 2026, Invest Securities Raises Its Target
Invest Securities reaffirms its positive outlook on ABL Diagnostics and raises its price target, citing expected growth acceleration from 2026 and margin improvement. The analyst highlights a balanced growth model and structural catalysts enhancing business visibility.
A Growth Trajectory of +76.5% in 2026, Driven by Multiple Engines
Invest Securities emphasizes that ABL Diagnostics has, for the first time, communicated an ambitious annual trajectory for 2026, with expected revenue of €12.2M, an increase of 76.5% compared to 2025. This growth is supported by two pillars: the recurrence of historical activities (HIV genotyping/sequencing and software) and the ramp-up of new activities integrated in 2025, whose contribution is expected to grow by 93%. Within this growth, the analyst details a diversified model. Kits and reagents are expected to accelerate by 83%, driven particularly by HIV (an increase of 132%) and the UltraGene range (353%). Services and distribution should almost double, supported by CDL Pharma and Vela Diagnostics. Software solutions are expected to grow by 14%, with a strong recurring base.
Margins and Structuring Partnerships as Levers of Value Creation
The analyst identifies several value creation factors. ABL Diagnostics has a proprietary offering covering tests, software, and services, organized in an 'agnostic' approach compatible with major sequencing equipment, reducing adoption frictions. The company is preparing to launch innovative solutions, including HybridChek, expanding its application field. Commercially, Invest Securities highlights the importance of structuring strategic partnerships, including a multi-year contract that could reach about €2.7M. Volume increases and economies of scale are expected to generate significant margin improvement, with expected growth in EBITDA and net income. Despite a deteriorated in vitro diagnostics market, the analyst considers the value proposition competitive enough to support market share growth.
Price Target Adjusted to €8.7, Confirming Upside Potential
Invest Securities raises its price target from €8.4 to €8.7, reflecting sustained upside potential. This increase incorporates the ramp-up of growth engines, the expected improvement in profitability profile, and the increased contribution of strategic partnerships. Invest Securities maintains its 'Buy' rating.
