XTALPI-P (02228) shares surged 5.86% in Friday's trading session, following a valuation analysis that suggests the stock may be significantly undervalued. The sudden uptick in investor interest appears to be driven by the potential for substantial upside in the stock's price.

According to a recent discounted cash flow (DCF) analysis, XTALPI-P's estimated fair value is HK$7.87 per share, indicating that the stock could be undervalued by approximately 24% based on its current trading price. This valuation takes into account the company's projected future cash flows and growth prospects, providing investors with a compelling reason to reassess the stock's potential.

Adding to the bullish sentiment, analyst price targets for XTALPI-P average CN¥8.69, which is about 10% above the calculated fair value estimate. While the company is not expected to turn profitable in the next three years, investors seem to be focusing on its long-term potential and the possibility of significant returns as the company progresses towards profitability. The stock's movement today suggests that market participants are reevaluating XTALPI-P's prospects in light of this valuation analysis, potentially seeing an opportunity for value investment in the biotech sector.