The Australian share market may have been out of form on Monday, but that didn't stop the Nanosonics Ltd (ASX: NAN) share price from continuing its positive run.
In fact, the infection prevention company's shares climbed to a new record high of $7.95.
When it hit that level, it meant the Nanosonics share price was up 25% year to date.
But perhaps even more impressive, is that it has gained 54% since the start of November.
Image source: Getty Images
Why is the Nanosonics share price at a record high?
Investors have been buying the company's shares over the last couple months amid a big improvement in its performance.
In its business update at the start of November, management revealed that the company has continued to grow the footprint of its trophon product during the first four months of FY 2021. It advised that the number of new trophon units installed globally was up 16% during the period.
This was supported by growth in the sales of the consumables that the trophon system uses. Unit purchases of consumables by end customers in the first four months of FY 2021 were up 4% compared with prior corresponding period and 25% compared with the last four months of FY 2020.
This update went down well with analysts at UBS, who put a buy rating and $7.20 price target on its shares following the update.
Though, after rocketing 38% higher since that broker note was released, the Nanosonics share price is now trading well ahead UBS' price target.
What else is driving its shares higher?
As with many shares, the prospect of effective vaccines being rolled out imminently has given its shares a boost.
Nanosonics struggled to gain access to hospitals in FY 2020 because of the pandemic. This appears to have made it harder to close deals and put a dampener on its growth.
However, once vaccines are rolled out, access should be significantly easier. And given the increasing importance of infection prevention, investors appear to be betting that demand for its products could strengthen.
This will make Nanosonics one to watch in 2021.
