Diaceutics: Strong Growth and Attractive Valuation Justify Buy Rating

Analyst Christian Glennie of Stifel Nicolaus maintained a Buy rating on Diaceutics (DIUXF – Research Report), retaining the price target of p225.00.

Christian Glennie has given his Buy rating due to a combination of factors that highlight Diaceutics’ strong performance and growth potential. The company has demonstrated significant organic revenue growth, with a 36% increase in FY24 and continued momentum into 2025, setting it on a path to meet its revenue and EBITDA expectations for the year. This growth is supported by strategic and operational achievements, such as a 23% increase in annual recurring revenue and an expansion in enterprise engagements and customer base, indicating a strong resonance with major pharmaceutical clients.
Furthermore, Diaceutics is transitioning from a two-year investment phase to a period of modest profitability and positive cash flows, with a solid cash reserve. The company’s valuation appears attractive, trading at a lower EV/sales multiple compared to peers, despite its superior top-line growth. The recent share price pullback is seen as an opportunity to buy, given the limited direct tariff exposure and the robust trading performance year-to-date. These factors combined make Diaceutics a compelling investment opportunity, justifying the Buy rating.