The 4DMedical Ltd (ASX: 4DX) share price climbed higher on Friday afternoon to close up 1.18% at 85.5 cents.
Investors appear to be rallying behind Thursday’s announcement, which revealed the company is launching the world’s first dedicated lung scanner.
The 4DMedical share price soared almost 20% yesterday. It’s likely that momentum spilled over into today’s session as trading volume surged well past its four-week average at 764,665 shares.
With big gains also on Tuesday and Wednesday, it means 4DMedical shares have surged 41% since last Friday’s close. This week’s gain is a welcome reprieve for 4D shareholders, who’ve seen their holdings evaporate over the past 12 months.
What’s been happening at 4DMedical?
The company advised that it has installed the ‘XV Scanner’ at the Prince of Wales Hospital in Sydney after it was unveiled to the Federal health minister on Thursday.
4D says the scanner will provide unparalleled access to visually map the lung and provides “highly visual insight into lung function”.
A successful launch will hopefully see the market adopt its XV Technology, something the company says is integral to successful commercialisation.
But the benefits extend primarily to the doctor-patient realm, and the scanner itself is considered somewhat a “breakthrough in innovation”, according to Lung Foundation Australia CEO, Mark Brooke.
It’s reported that seven million Australian currently are living with or are impacted by lung disease in some way, therefore any breakthrough would be a welcome sigh of relief to many.
Evans and Partners have 4DMedical rated as a speculative buy and value the company at $1.50 per share, suggesting an upside potential of 75% at the time of writing.
Meanwhile, Bell Potter has the company rated as a speculative hold but sets a price target of $2.07 per share — a mammoth 142% upside potential.
According to Bloomberg data, the consensus valuation is $1.78 per share, still a considerable amount of upside potential if the bull case plays out to that level.
4DMedical share price snapshot
In the last 12 months, the 4DMedical share price has sunk and is now 44% in the red. It is also down 36% this year to date.
Despite the 40% gain this week, shares have still fallen into the red by 5% over the past month.
The post 40% recovery: 4DMedical share price (ASX:4DX) turns sharply and delivers the goods appeared first on The Motley Fool Australia.
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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