UPDATE: Aegis Capital Reiterates on Cancer Genetics Following Better-Than-Expected 3Q 2013 Financial Results
In a report published Thursday, Aegis Capital Corp. analyst Raghuram Selvaraju reiterated a Buy rating on Cancer Genetics (NASDAQ: CGIX), and raised the price target from $25.00 to $32.50.
In the report, Aegis Capital Corp. noted, “Yesterday afternoon, after the market close, Cancer Genetics reported financial results for the third quarter of 2013. The firm reported a loss per share of $0.61, well below the $0.94 that we had originally projected. Revenue beat our estimate of $1.6mm, coming in at $1.7mm, and test volumes rose over 70% from the year-ago equivalent period, reaching 2,920 samples processed. Given the beat on both top- and bottom-line levels and the solid expense control, we are impressed with the operational performance to date. The firm recently raised gross proceeds of $46mm from the sale of ~3.3mm shares at $14.00 per share, in a registered direct equity offering that was led by Aegis Capital Corp. as sole book runner. Given the solid cash position, which we project as $50mm pro forma, and given near-term potential for sales and marketing infrastructure expansion, we reiterate our Buy rating and raise our price target from $25.00 to $32.50 per share with a 12-month time frame. In our view, Cancer Genetics represents a highly differentiated investment opportunity, given its broad pipeline of marketed and development-stage tests, and with its ability to generate high-margin revenue from partnerships with biopharmaceutical firms seeking to develop theranostic solutions for patients.”
Cancer Genetics closed on Wednesday at $12.60.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.