UPDATE: Piper Jaffray Downgrades Sequenom to Neutral, Lowers PT
In a report published Monday, Piper Jaffray & Co. downgraded its rating on Sequenom (NASDAQ: SQNM) from Overweight to Neutral, and lowered its price target from $6.50 to $5.00.
Piper Jaffray noted, “Recent management travels highlighted the recent capital raise, associated strength of their balance sheet, expanded menu and recent hiring of an additional 25 reps (now at 75) as their arsenal against competition. Management seems resigned to a protracted siege, intent to scale their tests delivered numbers (and hence better economics) as a way to pressure their smaller competitors. Separately, the company continues to have multiple contact with payers and although they recently reiterated their 2 large contracts by year end goal, our reimbursement experience suggests these discussions drag out. Bottom line: Sequenom is digging in for a long, likely expensive, battle and we are lowering our rating; preferring to sit this one out. We rate SQNM shares Neutral with a $5 price target (was $6.50).”
Sequenom closed on Friday at $3.94.
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