ANGLE (GB:AGL) and Allergy Therapeutics (GB:AGY) are two companies operating in the UK healthcare segment – could they be a good investment this autumn?
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Even though they are small players in the market, analysts see huge growth potential in the share prices, according to TipRanks rating tools.
More generally, analysts are also bullish on the healthcare sector and see a profitable investment opportunity in such stocks at present.
To shortlist such companies, we used TipRanks’ Stock Screener tool. With the help of this tool, investors can screen the small-cap stocks in any particular industry and compare them on various aspects.
Some of the criteria for screening the stocks are dividend yield, analyst rating, market cap, Smart Score, and more.
Let’s see the two stocks in detail.
ANGLE Plc
ANGLE is a healthcare company developing cancer diagnostics products with operations in the U.S., the UK, and Canada.
The company is mainly known for its patented liquid biopsy platform, Parsortix®PC1 clinical system. This is the first device that can collect cancer cells from a blood sample for further detailed research.
In May 2022, ANGLE received FDA approval on this system for use in metastatic breast cancer.
Post-approval news, the share price of the company jumped by more than 50% in one day. The analysts believe this will give the company a first-mover advantage in the cancer diagnosis industry. ANGLE also aims to align this system to be used in various types of cancer.
What’s in it for ANGLE’s stock?
As the approval opens many doors of opportunity for the company in terms of partnerships, analysts are bullish on the stock.
According to TipRanks, ANGLE stock has a Moderate Buy, based on one Buy rating from Berenberg Bank.
Berenberg Bank raised AGL target price from 195p to 231p in May 2022, showing an upside potential of 225.3%.
Berenberg Bank commented on the approval, “This is the biggest form of validation for the technology and is a major step in the commercial development of the company. It gives ANGLE a head start over competitors in one of the most attractive niches.”
Allergy Therapeutics
Allergy Therapeutics is a UK-based pharmaceutical company focusing on developing treatments for various allergic conditions. The company is known for its aluminium-free vaccines and treatments.
The company’s stock has performed fairly well in the market and has generated almost 50% returns in the last three years.
In its last announced interim results, the company saw a decrease of 10% in its revenue. The company expects this to continue in its results for the year ending June 2022, with revenue falling by £72 million from £84.3 million the previous year.
The company states that this is merely a short-term impact on revenues as it is consolidating its product portfolio by cutting down on a few older products to focus more on new products that generate better growth.
Moving ahead, the company is optimistic about its sales in 2023, expecting to hit double-digit growth. The company is betting big on peanut allergy vaccines and grass pollen immunotherapy, which are in the trial phase.
Allergy Therapeutics stock forecast
According to TipRanks’ analyst rating consensus, AGY has a Moderate Buy rating.
The AGY price target is 100p, which is 419.4% higher than the current price level.
Conclusion
Investors who are looking for higher returns and are willing to take that extra risk can consider these two stocks from the healthcare industry. These companies have strong fundamental growth in their business, which could well have a positive impact on share price.
