Start of coverage for medical equipment supplier Polynovo (ASX:PNV) by Morningstar has concluded with an assessment that puts the fair value estimate at A$1 per share.

The brokerage firm suggests the shares of the company may be overvalued, speculating that the market is being excessively optimistic regarding the speed and range of Polynovo’s commercial deployment and understating the possible competitive forces.

Morningstar reports, ‘We predict that Polynovo will have a limited defense against stronger competition in the upcoming decade, especially once its essential patents lapse in the fiscal year 2028.’ Analysts from Morningstar further anticipate an expansion of the company’s sales team to strengthen market shares.

Polynovo’s shares have notably fallen by 33.9% year-to-date according to the last known closing value.

Polynovo is a supplier of advanced medical equipment.