SQNM Sequenom initiated with a Underperform at Wedbush; tgt $0.50 (6.41 )
Wedbush initiates SQNM with a Underperform and price target of $0.50 saying they have significant reservations about the company and stock relating to Sequenom's inconsistent track record, lack of visibility into R&D missteps, dearth of publications, financing risk, and competitive threats. Firm recognizes that the stock continues to have a strong retail following and demonstrates extreme volatility at times, but feel that the long-term trend is much lower. They believe that a growing competitive headwind is developing related to innovations in sequencing-based technologies and other DNA-based methods. Dilutive financing, legal setbacks, and/or management turnover represent negative catalysts.
Wedbush needs to get their shorts coverage. Same old Wall Street scam!
Initiated with an underperform and target of 50 cents? Interesting how an analyst who has not previously issued an opinion now is expert and issues a price target that is 90% lower than current value and less than net cash.
Do you think a new analyst who issued an outperform rating and a price target 10 times the current price would be taken seriously? We would call him an ignorant pumper.
SQNM has lots of risks and the analyst provides a good summary. However, unless this analyst can state with 100% certainty that all of the negative risks will be realized, I think the price target is stupid.