The Novacyt share price is up over 10,000% but I still think it’s a buy

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images The Novacyt (LSE:NCYT) share price has risen from under 7p a year ago to 780p at yesterday’s close. That is an extraordinary 11,043% rise. Some equally impressive financial results underlie Novacyt’s stock price surge. In the first half of 2019, Novacyt made €5.86m in revenue. Half-year revenue for 2020 was up 1,129% year-on-year to €72m. Novacyt made an operating loss of €0.89m for the first six months of 2019 but turned an operating profit of €48.65m for the same period in 2020.Novacyt’s trailing 12-month net income up to 30 June 2020, was €35.44. That is a stellar improvement in the bottom line of a company that traditionally reported full-year losses. Clearly, something significant has happened at this maker of diagnostic tests for cancer and infectious diseases, and that something is the coronavirus crisis.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Novacyt share price riseIn early January, Novacyt started work on a coronavirus test. Later that month its global regulators made it the first test approved for use. At the same time, Novacyt scaled up its manufacturing capacity to deal with the anticipated surge in demand. Novacyt’s share price started to climb in January as the markets took note of its efforts.In April, Novacyt won a contract from the UK Department of Health and Social Care (DHSC) to supply coronavirus testing kits. This drove its share price higher. After a bit of a slump, September brought a stunning half-year report, a new contract from the DHSC, and a new type of test. Novacyt’s share price rallied again, hitting a high of 880p in October.The September DHSC contract is worth at least €160m. This will rise to around €260 if, as expected, the DHSC takes the option to extend the supply period from 14 to 24 weeks. Novacyt has become a trusted partner of the DHSC because it offers tests for active and past coronavirus infections. Also, it has near-patient testing kits on offer, alongside equipment for use in dedicated larger-scale testing units. This range of options is just what governments require to carry out mass testing.Testing timesNovacyt’s full-year 2020 revenues could be north of €332m – that is year-on-year revenue growth of an astonishing 5,566%. Revenues from coronavirus testing are expected to continue to be high well into 2021. But, what of the years beyond the coronavirus crisis? How will Novacyt and its share price do then?Novacyt plans to leverage the reputation, market intelligence, and relationships developed during the Covid-19 response to commercialise new products and expand its presence in respiratory and transplant clinical diagnostics. Novacyt now has plenty of cash (and no debt) to make acquisitions and invest in R&D to achieve these goals.Novacyt’s management looks more than competent. They acted quickly and decisively when alerted to the coronavirus, beating many to the punch. Then they continued to innovate as the crisis developed. I have confidence they will achieve their goals. The trend to diversify supply chains in the wake of the coronavirus also works in Novacyt’s favour as it will allow market share to be gained with increased ease. Also, decentralised testing is a new theme and requires outfitting more locations with testing capabilities, which is to Novacyt’s benefit.Novacyt is still a small company, and its plans carry significant execution risk. But I think the Novacyt share price has room to run for an investor willing to accept the risks. See all posts by James J. McCombie I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares James J. McCombie | Wednesday, 14th October, 2020 | More on: NCYT center_img “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address The Novacyt share price is up over 10,000% but I still think it’s a buy James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. 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"The Novacyt share price is up over 10,000% but I still think it’s a buy"