Degroof Petercam announced on Monday that it had initiated coverage of Aelis Farma shares, with a buy recommendation and a target price of €20.

In a note published this morning, the Belgian investment house backs up its opinion with a series of elements, starting with the innovation represented by the biopharmaceutical company's therapeutic approach.

In particular, the Brussels-based firm points to the promise of its cannabis addiction treatment and its treatment for cognitive disorders, including those associated with Down's syndrome.

Degroof Petercam points out that its proprietary technology platform could be extended to other indications, suggesting that one of its projects could potentially become a 'blockbuster', i.e. a drug generating sales of over a billion dollars a year.

The brokerage firm thus describes an "attractive investment opportunity", with a potential upside of 40%, as it values the company at around 250 million euros, or 20 euros a share.

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