Shares in Ion Beam Applications (IBA) rise almost 10 percent tohit a six-month high after the Belgian cancer radiation company signs threeRhodotron sterilisation accelerator deals worth a total of about 10 millioneuros.
KBC Securities says the deals provide confirmation that the company is ontrack, adding that the amount is sizeable given IBA only sold 15 million eurosof such accelerators in the first half of 2012.
KBC analyst Jan De Kerpel, however, says more significant are signs that IBAwill get paid for more costly proton therapy centres in Essen, Germany, overwhich it has been in a legal dispute, and Trento, Italy, which is due forcompletion early next year.
The two projects have weighed on the company's balance sheet and have anegative sum-of-the-parts valuation of 2 euros per share.
KBC Securities raises its target price for IBA to 8.0 euros from 5.5 eurosand reiterates its 'buy' recommendation on the stock.
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