UPDATE: Credit Suisse Upgrades Sequenom to Neutral on Lessened Risks
In a report published Monday, Credit Suisse analyst Vamil Divan upgraded the rating on Sequenom (NASDAQ: SQNM) from Underperform to Neutral, and slightly raised the price target from $4.00 to $4.50.
In the report, Divan noted, “Following daily moves in SQNM's stock can get one dizzy, but after seven months the stock basically has remained at about the same level. While it has underperformed our coverage, volumes for MaterniT21 PLUS remain robust and the story is de-risked somewhat with the company's announcement that they have entered into a national agreement with the Blue Cross and Blue Shield (BCBS) Association for the test. We do still see risks to the story but are comfortable upgrading the stock to Neutral (from UP) and raising our TP to $4.50 (from $4). Volumes remain robust. As we have always believed, adoption of these novel non-invasive prenatal tests (NIPTs) has been rapid. SQNM continues to expect to run more than 150,000 tests in 2013 (we currently model 175,000 tests). SQNM is likely to continue losing share as newer competitors enter the market but enough of the high-risk market still needs to be penetrated to allow all of the players to show good volume growth.”
Sequenom closed on Friday at $4.05.
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