Alert: update to Pure Tech Health
5th September 2019 |
Action to take: introduce a stop at 250p
Originally recommended at: 155p
Currently trading at: 290p
Stop at: 250p
I received this email from a subscriber relating to PureTech Health:
You made a second recommendation on 18th May 2018 to buy PRTC with a 12-month upside target of £2.50. It is now trading at £2.76. Why have you not made the recommendation to sell? If you have changed your mind about the upside target then I think that should be communicated to your readers. Or am I missing something here?
I want to reassure you that I have not forgotten about the share, rather the opposite. My initial target was indeed 250p and I am pleased to see the share consolidate above that level. My investment thesis with PureTech has always been that it has so much going for it, that it only had to have one of its investments to go right for the share to take off.
That is what happened with the speculation the company will seek a US IPO following the positive FDA trajectory for its digital medicine product. Peel Hunt now has a 380p target for the share.
Therefore, I am not going to take the profit now. Instead I recommend introducing a stop at 250p. In the investment world it is often you let winners run and that it what I intend to do with PureTech.
All the best,

Eoin Treacy
Investment Director, Frontier Tech Investor