Polynovo shares look like the underdog of the ASX, but could 2022 be a better year?
The post How might the Polynovo (ASX:PNV) share price perform in 2022? appeared first on The Motley Fool Australia. –
The Polynovo Ltd (ASX: PNV) share price has had a year to forget in 2021. To say the performance of the dermal regeneration solutions company was disappointing would be an understatement.
Shares in Polynovo are down 63% since the beginning of this year. That is a difficult pill to swallow for any investor — especially when the S&P/ASX 200 Index (ASX: XJO) has returned a gain of 9.6% during that time.
The company might have started the year off on the wrong foot, setting the pace for what would be a challenging year. Mere days after hitting an all-time high at the end of 2020, the Polynovo share price ushered in the new year with a steep decline, falling ~35% in the first two weeks of trading.
Despite achieving record sales in FY21, it seems onlookers have been wary of business disruptions caused by COVID-19.
Could 2022 be the year the Polynovo share price springs back to life?
What does Polynovo have planned for the year ahead?
This year might have been a treacherous one for Polynovo shareholders. However, the company has a number of positive developments in its sights for 2022.
One of the plans for the new year could likely be essential to stabilising the Polynovo share price. This, of course, is the replacement for managing director and CEO, Paul Brennan. The sudden exit of Brennan followed seven years of service to the company, playing an instrumental role in commercializing Polynovo’s medical technology.
According to the company’s latest update, Polynovo has received incredible interest in the vacant permanent CEO position. As such, it expects to bring on a suitable candidate in the first quarter of 2022.
Simultaneously, the company has been building out its sales teams — which are integral to growing revenue. As of 14 December, Polynovo stated it was in the final stages of recruiting a further 4 United States sales representatives, with the board approving an additional 10 hires.
Shareholders will be hoping this additional sales force will drive increased revenue for FY22. For reference, the company recorded $29.16 million in revenue for FY21.
Analyst’s take on the Polynovo share price
The team at Macquarie Group Ltd (ASX: MQG) is undeterred by the shocker of a year for Polynovo’s share price. Earlier this week, analysts at the investment bank shared their expectations for the medical polymer technology company in a note.
In a good sign for shareholders, the broker tagged the Polynovo share price with an outperform rating and a $2.85 price target. At today’s closing price, this would imply an upside of more than 100%. Yet, it’s still a far cry from the share’s 52-week high of $4.08.
It appears a number of short-sellers have the opposite opinion to Macquarie’s analysts. Based on ASIC’s short report for last week, Polynovo is still in the top 10 most shorted ASX shares with a 7.5% short interest.
The post How might the Polynovo (ASX:PNV) share price perform in 2022? appeared first on The Motley Fool Australia.
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Motley Fool contributor Mitchell Lawler owns Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended POLYNOVO FPO. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.