RBC Capital starts Advanced Medical Solutions at ‘sector perform’

RBC Capital Markets initiated coverage of Advanced Medical Solutions on Thursday with a ‘sector perform’ rating and 285p price target, as it sees a clear path to a re-rating but remains on the sidelines until then.

It said AMS is a well-run, cash generative business that is set to bolster its already-impressive positioning in defensive end markets with a range of recent and upcoming launches.

"However, the current share price is already full, in our view, and our £2.85/share price target has insufficient implied upside for us to recommend buying the shares at this stage," it said.

RBC said its sees "meaningful" upside potential from surgical sealant Seal-G, and may revisit its rating on positive clinical and commercial developments.

AMS develops and manufactures tissue-healing technology.