News Column

Share watch : Walk this way for Rex appeal

June 22, 2014

Perry Gourley

WITH some 1.35 million wheelchair users in the US who have suffered spinal cord injuries, the potential market for REX BIONICS is significant.The company, which raised GBP10 million in an initial public offering last month, has developed a robotic skeleton device which aims to offer spinal cord injury victims a chance to walk.Rex aims to commercialise the product by focusing on rehabilitation centres, with a version for personal use to launch in 2016.Although there are just seven of the devices in use, according to analysts at Equity Development that could increase to more than 300 by 2017 and a device aimed at the personal market could take that total to more than 1,500 by 2019.It said the flotation had provided the financial firepower for further development of the robotic walker."We anticipate an aggressive implementation of a business model highlighting the commercial opportunities - right now - in the rehabilitation segment in developed markets. Capital and additional management resource are to support aggressive selling efforts and expanded production activities in the medium-term."The analysts believe a break-even position should be achievable from the second half of 2016 and said the business could be valued at some GBP40m, almost twice the current level.n Shares in fashion chain SUPERGROUP have been under pressure in recent weeks amid general downbeat sentiment around the clothing sector, but analysts at Canaccord Genuity believe they represent good value."We recommend investors take advantage of the current buying opportunity," said a note. "With no change to the medium-term growth outlook, and the internal problems of the past now well behind the company, the share price offers an excellent entry point for any investors who missed the ramp up off the 2012 low."Investec also believes the long-term growth story at the company behind the SuperDry label remains a strong one.Shares in the company were hovering above 900p at the end of last week, compared with a high of 1,744p seen in April.Market watchMonday: Omega Diagnostics (F)Tuesday: Carpetright (F)Wednesday: Stagecoach (F)Thursday: Pinnacle Technology (I)Friday: Hornby (F)

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Source: Scotland on Sunday

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