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Organovo Has Upside To $6/Share, Cantor Fitzgerald Says

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In a report published Wednesday, Cantor Fitzgerald analyst Caroline Corner maintained a Buy rating on Organovo Holdings Inc (NYSE: ONVO), while raising the price target from $5 to $6, saying that the company's progress to date has been impressive.

Organovo said that it had booked $1.94M worth of contract revenues to date. Of this, $0.29M has been recognized as revenue through March 2015. "Contract revenues represent customer orders for use of the exVive3D Liver Tissue model for toxicology studies…Based on the recorded revenues and our updated assumptions regarding rate of signing new customers, we have raised our revenues incrementally," analyst Caroline Corner wrote.

In the report Cantor Fitzgerald noted, "Organovo also stated that it has had "multiple customers sign a second contract", which we think is another positive sign this early in the launch. The company mentioned it has liver service contracts with customers in the U.S., E.U. and Asia, and has contracts with multiple top-25 global pharma companies, as well as smaller companies."

In April, the company had announced that it had signed an agreement with Merck & Co., Inc. (NYSE: MRK) for its liver product. Organovo may disclose other pharma partners in the coming quarters. Moreover, the company has a development partnership with L'Oreal SA (ADR) (OTCMKTS: LRLCY), and "we think we could hear updates on the development of the skin tissue product in coming quarters," Corner added.

The EPS estimates for 2015 and 2016 have been raised from $0.5 to $0.6 and from $3.5 to $4.6, respectively.

Latest Ratings for ONVO

Dec 2016BTIG ResearchInitiates Coverage OnBuy
Nov 2016Evercore ISI GroupInitiates Coverage OnBuy
Aug 2015Cantor FitzgeraldDowngradesHold

View More Analyst Ratings for ONVO
View the Latest Analyst Ratings

Posted-In: Cantor FitzgeraldAnalyst Color Price Target Reiteration Analyst Ratings


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