Brokerage firm Morningstar states that shares of Australia’s Clinuvel Pharmaceuticals (ASX:CUV) remain undervalued, despite lower-than-projected revenue growth in the first half of the fiscal year.

Claiming a firm belief in its AUD 18 fair value estimate, they insist that the stock still presents a good value proposition.

Furthermore, Morningstar suggests that the market might be underestimating potential new streams of earnings for Clinuvel.

They have forecasted the company’s combined market share across Europe and the U.S.

to reach 37% by fiscal year 2033, up from an estimated 13% in fiscal year 2023.

According to data from the London Stock Exchange, all five analysts who cover the firm have given it a ‘buy’ rating or higher, with a median price target of A$22.25.

Despite these positive predictors, Clinuvel’s share price has fallen 10.5% year-to-date as of its last close.

Clinuvel Pharmaceuticals is an Australian biopharmaceutical company involved in the research, development and sales of treatments for various severe skin disorders.