The Polynovo Ltd (ASX: PNV) share price has been on a disappointing run over the past few months. The medical device company's shares have dropped 15% in the past month, and 35% in 2022 alone.
At the time of writing, Polynovo shares have nudged over the $1.00 mark, trading for $1.01, a gain of 0.5%.
What's happened to Polynovo recently?
In late February, Polynovo released its interim results for FY22, highlighting mostly strong numbers across the board.
Total revenue increased by 41.9% to $18.15 million over the prior corresponding period, underpinned by growth in key markets. This included the United States, up 58% to $14.2 million in sales.
However, on the bottom line, Polynovo achieved a net loss after tax of $1.7 million when not factoring in non-cash items. This consisted of unrealised forex gain/(loss), depreciation & amortisation, and share-based payments.
The overall result fell short of market expectations, leading the company's shares to fall 3.32% on the day. At the end of that week, its shares had sunk around 14%.
What do the brokers think?
A number of brokers weighed in on the Polynovo share price following the company's H1 FY22 financial scorecard.
The team at Macquarie cut its 12-month price target for Polynovo shares by 44% to $1.60.
It appears the broker is acknowledging Polynovo is underperforming its expectations for FY22 but predicts the business will make a turnaround. This is in particular for its NovoSorb product which is poised for growth in the medium to long term.
In addition, Wilsons put out a more bearish tone, slashing its outlook by 22% to $1.11. Its analysts believe that the medical company's shares are overvalued.
Based on the current Polynovo share price, this implies an upside of almost 12%.
Polynovo share price summary
Over the last 12 months, Polynovo shares have continued to decline with a loss of more than 63% in value.
This is a sharp contrast from when its shares hit an all-time high of $3.19 in April 2021 amid positive investor sentiment.
Today, Polynovo shares trade around the $1.00 mark.
The company presides a market capitalisation of roughly $664 million and has approximately 662 million shares on its books.
