It’s a tale of two biotech firms this afternoon, as shares of TrovaGene Inc (NASDAQ:TROV) are up $0.73, or 20%, at $4.37, and shares of Rosetta Genomics Ltd. (USA) (NASDAQ:ROSG) are up $0.08, over 9%, at $0.92, following new contract announcements. Subsequently, Cantor analyst Bryan Brokmeier weighed in on these names with some commentary.
Brokmeier reiterated a Buy rating on shares of TrovaGene, with a price target of $10, after the company announced an agreement with FedMed, providing health insurance access to TROV’s full line of Precision Cancer Monitoring (PCM) tests and services.
Brokmeier observed, “We recommend that investors BUY shares of TROV following the announced contract with FedMed, one of the largest national provider networks in the country. The contract is on the heals of last month’s announced contract with America’s Choice Provider Network (ACPN), further demonstrating the company’s commercialization plan as it expands patient access to its urine-based liquid biopsy tests. We anticipate additional data to be published and presented in the coming months, which should further support the validation and clinical utility of TROV’s urine-based tests, which we view as necessary to obtain managed care contracts.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bryan Brokmeier has a yearly average return of 6.5% and a 46.9% success rate. Brokmeier has a -11.1% average return when recommending TROV, and is ranked #612 out of 3622 analysts.
Rosetta Genomics Ltd. (USA)
In addition, Brokmeier reiterated a Buy rating on shares of Rosetta Genomics, with a $3.00 price target, after the company announced an agreement with ACPN, providing further health insurance access to ROSG’s proprietary miRNA testing services and entire menu of diagnostic tests and services.
Brokmeier commented, “The contract demonstrates that the company has contracts in place to receive reimbursement for its proprietary testing services, including the company’s recently launched RosettaGX Reveal Thyroid nodule classification test. Although we are moderately concerned that our 4Q:15 revenue estimate may be too high given the company’s announcement that last month it achieved a record of nearly $1M in collections, we believe the new covered lives, the ramp of RosettaGX Reveal, and the anticipated increase in reimbursement rates for some of the company’s FISH tests, should accelerate revenue growth throughout 2016.”
As of this writing, all the 4 analysts polled by TipRanks rate Rosetta Genomics stock a Buy. With a return potential of 622%, the stock’s consensus target price stands at $6.50.