Nanosonics Limited: Strong Defensive Position and Growth Potential with Trophon and CORIS
Nanosonics Limited is positioned strongly with its Trophon franchise, enhancing margins and supporting the upcoming CORIS product aimed at infection control. Despite market underestimation, CORIS's advanced cleaning capabilities and the need for investment in clinical efficacy are noted. The Trophon franchise has diversified revenue streams, stabilizing earnings amid competition. Growth is seen in EMEA, Japan, and China through third-party distribution. Recent FDA approval of CORIS highlights its efficacy, but market access requires integration into clinical guidelines. Analyst Davinthra Thillainathan maintains a positive outlook with a Buy rating and A$4.50 price target.
Davinthra Thillainathan’s rating is based on the strong defensive characteristics of Nanosonics Limited’s Trophon franchise, which is contributing to significant margin improvements. These improvements are expected to support the launch of their next major product, CORIS, which aims to address a significant unmet need in infection control. The market currently underestimates the potential of CORIS, despite its advanced cleaning capabilities and the necessity for further investment to enhance its clinical efficacy and automate endoscope reprocessing.
Additionally, the Trophon franchise has introduced new revenue streams and pricing models that have fortified Nanosonics’ competitive position, even with the entry of competitors in the US market. The shift towards recurring revenues is expected to stabilize earnings, and growth in regions like EMEA, Japan, and China is being driven by a third-party distribution model. The recent FDA approval of CORIS underscores its efficacy, although its adoption will require integration into clinical guidelines and partnerships with key manufacturers to enhance market access.
Thillainathan covers the Healthcare sector, focusing on stocks such as Fisher & Paykel Healthcare Corporation Limited, Nanosonics Limited, and Healius Limited. According to TipRanks, Thillainathan has an average return of 1.8% and a 53.33% success rate on recommended stocks.
In another report released on September 17, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a A$4.50 price target.
