QT Vascular

UOBKayhian on  June 2014

FY14F PE (x): n.m.
FY15F PE (x): n.m.
QT Vascular (QTV) received FDA 510(k) clearance to market its Chocolate PTCA
balloon catheter in the US on 4 Jun 14, ahead of our expectation of Oct 14. We relooked
at our estimates and valuation methodology after the positive surprise.
Maintain BUY with a higher target price of S$0.60 (previously S$0.51). We fine-tuned
our valuation methodology to work in the heightened possibility of a takeover. We
maintain our P/S target of 10x but assume an equal chance that the company may be
acquired in 2015 or 2016. The table below provides a probability-weighted sensitivity
analysis on our fair value for the stock.