Creo Medical tipped for major upside as commercial story continues to gain traction

Deutsche Bank reiterated a Buy on Creo Medical with a 40p price target—implying substantial upside from the current ~10.25p share price—after a capital markets day that showcased strong clinician endorsement and easy integration of its energy‑based endoscopy platform. Management reiterated confidence in meeting FY25 expectations (no new financials were issued), and DB flagged a large and growing addressable market, upcoming product launches in late‑2026/early‑2027 and potential US upside from 2027 driven by an anticipated CPT reimbursement code and ongoing studies with Intuitive and MicroBlate. Creo is described as well‑funded and strategically positioned for material long‑term upside, although management has set more prudent guidance targeting break‑even by 2028.

Analysis

Deutsche Bank reiterated a 'Buy' on Creo Medical and set a 40p price target, implying material upside from the current London share price of approximately 10.25p. The upgrade followed a capital markets day where live presentations from physicians using Creo's energy-based endoscopy platform highlighted ease of integration into existing workflows and expanding clinical utility, bringing the commercial opportunity into sharp view. Management reiterated confidence in meeting FY25 expectations despite issuing no new financials, while the broker described guidance as more prudent with management targeting break-even by 2028. DB identified a large and growing addressable market, a broader product suite planned for late-2026/early-2027 and potentially significant U.S. upside from 2027 tied to an anticipated CPT reimbursement code and ongoing studies with Intuitive and MicroBlate, and also noted the company is well-funded and strategically positioned for long-term upside.

Key Decisions for Investors

• Consider selective accumulation given Deutsche Bank's Buy and 40p target but size positions modestly because the upside depends on product launches and U.S. reimbursement timelines
• Monitor key near- and medium-term catalysts closely: FY25 delivery, late-2026/early-2027 product releases, confirmation of the CPT reimbursement pathway and results from Intuitive and MicroBlate studies
• Treat the position as a multi-year, event-driven trade aligned to management's break-even by 2028 and use staged purchases or downside hedges to manage execution and timing risk
• Reassess exposure if the company's funding position or delivery timelines change despite DB's view that Creo is currently well-funded; material dilution or missed milestones should prompt position trimming