The Nanosonics Ltd (ASX: NAN) share price is roaring upwards today despite no announcements from the company.
In afternoon trade, shares in the infection prevention company are up 8.63% to $6.04 apiece. Consequently, the Nanosonics share price is 26.8% away from its 52-week high of $8.25.
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Could Nanosonics be a buy?
Although there is a lack of news regarding Nanosonics on Tuesday, a broker note was recently published on the healthcare company.
According to the analysts at Morgans, the Nanosonics share price could have more upside awaiting shareholders. Ostensibly, the team of analysts has placed an add rating on the Trophon manufacturer, while simultaneously cutting its price target to $6.97.
However, even with the reduced price target, this would suggest a further 15.4% upside to the Nanosonics share price. Perhaps investors are still absorbing this proposition on Tuesday, as the shares are bid higher.
Another viewpoint, the market might be paying more attention to shares primed for the nation's reopening after months of COVID-19 restrictions. Healthcare shares with exposure to elective surgery have struggled throughout the pandemic. On Wednesday last week, New South Wales Health announced the return of non-urgent elective surgery across Greater Sydney.
At the time, NSW health deputy secretary Wayne Jones stated: "Thanks to the extraordinarily high vaccination rates across the state and declining community transmission of COVID-19, patients can now have their non-urgent surgery."
Investors might be speculating over the potential for an increase in Nanosonics Trophon consumables following the return of elective surgeries.
Nanosonics share price snapshot
Nanosonics shares have been range-bound since late 2019. During this time, the company's shares have traded between $4.65 and approximately $8.00. As a result, Nanosonics' volatility is above the broader market average.
In addition, Nanosonics has returned 11.4% over the past year. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has outperformed the company, delivering a return of 21%.
In terms of valuation, the company currently trades on a price-to-earnings (P/E) ratio of 208 times based on the current Nanosonics share price.
