Auriga Upgrades Sequenom To Buy, Shares Surge (SQNM)
Auriga released a research report today upgrading shares of Sequenom (NASDAQ: SQNM) to Buy with a $9 price target. The company is developing a non-invasive prenatal diagnostic test for Trisomy 21 (T-21, Down Syndrome). The analysts wrote that "after reviewing recent literature and discussions with thought leaders and industry contacts, we are more comfortable with SQNM's sequencing based approach for T-21, and see a more clearly defined path to commercialization."
The firm's $9 price target is based on 20x earnings estimates for 2015 of $1.35 discounted back 4 years at 30%. Potential risks to their price target include 1) Scientific validation of T21 tests; 2) market acceptance of RhesusD and fetal XY tests, and 3) delays in the launch of T-21 screening test. During today's trading session, SQNM shares have gained 9.26% to $6.49. Sequenom, Inc. (SQNM) is a diagnostic testing and genetics analysis company based in San Diego, California.
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