Wedbush Securities Expects In-Line Results For Sequenom
In a report published Thursday, Wedbush Securities analyst Zarak Khurshid reiterated an Outperform rating and $4.50 price target on Sequenom, Inc. (NASDAQ: SQNM).
In the report, Wedbush Securities noted, "SQNM appears to have roughly 30% share in the US market for non-invasive prenatal testing and through the Quest deal could capture 900 basis points of share by year end, in our view. Through a combination of first mover advantage, solid performance data, lower redraw rates, a recently expanded panel that includes microdeletions, aggressive targeting of maternal fetal medicine specialists and a high quality service, SQNM has established a strong presence in the US. Despite the complicated competitive environment (3 competitors with varying price points and somewhat comparable performance), SQNM has held its own.
"Although the company trades at an attractive 2015E EV/Sales multiple (~2.2x vs a 3.8x group median), management credibility, bloated opex driving a high cash burn plus competitive and legal uncertainties have been significant overhangs on the stock. With test volumes growing, stable pricing, improving opex and margins demonstrated in 1Q14 plus the recent IP wins, a 3rd National payor contract, divestiture of the legacy bioscience business, progress towards launch of VisibilitT (low cost, all-comers test), accrual revenue shift and the Mayo deal announcement, we believe the company is making meaningful progress. With progress towards cashflow breakeven and healthy test volume contribution from the Quest deal we continue to see opportunity for meaningful share price appreciation over the next 12 months."
Sequenom closed on Wednesday at $3.53.
Latest Ratings for SQNM
Jun 2014 | William Blair | Upgrades | Market Perform | Outperform |
Jan 2014 | Piper Jaffray | Downgrades | Overweight | Neutral |
Nov 2013 | Maxim Group | Reiterates | Buy |
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