Sirtex Medical (SRX) is the best performer on the Uncapped 100 this afternoon after the liver cancer treatment developer’s share price recorded its best gain in nearly a decade on its latest sales update.
Management reported dose sales of its microspheres increased 18.7% in the December quarter, which stands in stark contrast to the previous dismal sales growth of just 4% for the September quarter.
The sharp slowdown in dose sales in three months to September sparked a sharp sell-off in the stock, which declined around 17.5% from October to yesterday, but today’s sharp 17.6% rebound to $13.41 during lunch time trade means that Sirtex has effectively regained all of those losses.
If it finishes the trading day at these levels, it would mark the stock’s best one-day performance since April 19, 2005.
Investors can now feel more confident that management can meet consensus earnings forecasts for the current financial year with the sales re-acceleration driven primarily by demand from the United States.
Analysts polled on Bloomberg are tipping sales growth of 23.7% and an adjusted net profit increase of 38.9%, to $119.8 million and $25.4 million, respectively.
There could be further room for the stock to climb as supporters point to Sirtex’s relatively attractive 2013-14 price-earnings multiple of 22.8 times – or a 33% discount to global peers.