Volpara Health Technologies Limited [ASX:VHT] provides breast imaging analytics and products that help in clinical decision-making for the early detection of breast cancer. VHT publicly listed on the ASX back in April 2016.
What’s the news behind the share price move?
In a chirpy announcement to investors this morning, the company said it had exceeded its forecast guidance for annual recurring revenue and coverage of US women.
This follows on from the previous news that the Food and Drug Administration in the United States is moving to require breast density information be included in standard testing.
The stock has rallied 87% from the previous low in February at the time of writing.
What’s next for the VHT share price?
Currently, Volpara doesn’t make a profit, despite its growing revenues.
That means the stock will rely on continued good news and positive sentiment.
It’s fair to say that Volpara will need to turn its revenue into profits in order to sustain the current market valuation. It will also need to continue hitting its revenue and sales targets.
It’s also reasonable to assume that Volpara may see some profit taking in the short term after its recent rise.
This is not an endorsement to buy and sell the stock. It’s an update only. If you are interested in small-cap companies like Volpara, I encourage you to read the recent report that our small-cap expert Callum Newman has produced. You can access it here.