Canaccord Genuity Reiterates Buy Rating, $50 PT on Cepheid

In a report published Friday, Canaccord Genuity reiterated its Buy rating and $50.00 price target on Cepheid

. Canaccord Genuity noted, “CPHD announced that it has obtained FDA approval for its GeneXpert test for CT/NG (Chlamydia/gonorrhea), in line with our expectations...We are making no changes to our model at this time. We estimate CPHD will drive CT/NG revenues of $11M in 2013, which assumes an ASP of ~$27 and volumes of 407,000 tests. We estimate the worldwide CT/NG market (led by HOLX, BD and Roche) is about $500M ($350M US/$150M OUS). Our estimate of $11M in sales in 2013 implies CPHD can capture 2-3% of the market in year one. CDC estimates 2.8M infections of CT per year in the U.S. (1.4M reported) and 700,000 infections of NG per year in the U.S. (300,000 reported).” Cepheid closed on Thursday at $32.70.