Shares in Ion Beam Applications (IBA) rise almost 10 percent to hit a six-month high after the Belgian cancer radiation company signs three Rhodotron sterilisation accelerator deals worth a total of about 10 million euros.
KBC Securities says the deals provide confirmation that the company is on track, adding that the amount is sizeable given IBA only sold 15 million euros of such accelerators in the first half of 2012.
KBC analyst Jan De Kerpel, however, says more significant are signs that IBA will get paid for more costly proton therapy centres in Essen, Germany, over which it has been in a legal dispute, and Trento, Italy, which is due for completion early next year.
The two projects have weighed on the company's balance sheet and have a negative 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 euros and reiterates its 'buy' recommendation on the stock.
For more on Belgium's biotech sector see Reuters messaging rm://philip.blenkinsop.thomsonreuters.com@reuters.net
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