Skip to main content

Market Overview

Raymond James Sees 'Lingering Risks' At OraSure, Downgrades To Market Perform

Share:
Raymond James Sees 'Lingering Risks' At OraSure, Downgrades To Market Perform

Shares of OraSure Technologies, Inc. (NASDAQ: OSUR) are up 20 percent year-to-date. Raymond James’ Nicholas Jansen downgraded the rating for the company from Outperform to Market Perform, saying the shares were within 3 percent of the previous price target of $8.

Factors Driving Outperformance

Analyst Nicholas Jansen mentioned that OraSure’s outperformance was driven by upside to the company’s 4Q and 1Q numbers, growing profitability, and the potential Zika opportunity.

Jansen believes that OraSure’s strength lies in its DNA Genotek franchise, which contributes 25 percent of its revenues. He added that more options, including work on Ebola and Zika, were available for the company and could lead to modest appreciation in its shares.

Related Link: OraSure Technologies Hires Michael Reed As Chief Scientific Officer

Risks To Future Performance

While OraSure’s partnership with AbbVie Inc (NYSE: ABBV) is on a solid footing, the challenges facing the Hepatitis C market have increased, thus affecting the performance of AbbVie’s drug.

“The five-plus year contract that was signed in June 2014 has its first six-month notice exit clause at the end of this month, which is worth monitoring,” Jansen added. An end to this relationship implies OraSure would no longer be profitable in the short term.

Other risks facing the company include ongoing competitive HIV pressure, and “likely peaked near-term gross margin trends.” These factors along with limited visibility into more meaningful revenue upside in 2016 warrant a more balanced risk/reward at the current levels, the analyst commented.

Latest Ratings for OSUR

DateFirmActionFromTo
May 2021Raymond JamesMaintainsOutperform
Aug 2020Evercore ISI GroupInitiates Coverage OnOutperform
Aug 2020JP MorganInitiates Coverage OnNeutral

View More Analyst Ratings for OSUR
View the Latest Analyst Ratings

 

Related Articles (OSUR)

View Comments and Join the Discussion!

Posted-In: Ebola GenotekAnalyst Color Biotech Downgrades Health Care Analyst Ratings General Best of Benzinga

Latest Ratings

StockFirmActionPT
SWIMBarclaysInitiates Coverage On37.0
RAINCitigroupInitiates Coverage On28.0
RDHLHC Wainwright & Co.Initiates Coverage On23.0
FSTXHC Wainwright & Co.Initiates Coverage On35.0
ALLKHC Wainwright & Co.Initiates Coverage On230.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com