908 Devices Inc MASS is seen as a high-growth life science tools company that analysts at SVB Leerink expect to “outperform” despite conservative 2021 guidance given by its management due to the current visibility.
The 908 Devices Analyst: SV Leerin analyst Puneet Souda has reiterated the $70 price target and maintained his outperform rating on the stock.
The 908 Devices Thesis: Souda sees 908 Devices’ reengineered mass instruments, which are small in form and are easy to use with a fast turnaround time and accurate results, to contribute significantly to the expansion of its applications into new markets in a way not seen before.
The company on Tuesday said it expects 2021 revenue to be in the range of $38 million to $40 million, which the analyst believes is conservative given the company’s MX908 placement pipeline including the recent $25M Army contract to be delivered over the next two years, and the expansion of the REBEL instrument during the year.
“The order was largely expected to occur in 2021 but management was unclear on the exact timing. The receipt today gives much stronger visibility into revenue trends in 2021 and 2022 for MX908,” Souda wrote in a research note.
Unlike the traditional mass specs that are highly accurate and versatile but large and heavy, cumbersome, expensive and require expertise to use, the company's devices are seen as the new generation, easy-to-use instruments, according to the SV Leerink note.
The brokerage views 908 Devices as a life science company in the longer-term despite nearly 70% of its revenue being derived from the MX908 instrument which is used in field forensics.
“REBEL holds the key to revenue growth for the company..handheld mass specs MX908 is expected to drive 26% growth CAGR over the next few years,” Souda said.
Cathy Wood’s Ark Genomic Revolution ETF ARKG has been adding 908 Devices to its portfolio after its public listing in December 2020. As of March 31, 908 Devices contributes a 0.53% weight to the fund’s portfolio, with 1,066,794 shares.
Photo courtesy: 908 Devices
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.