Why did Cantor Upgrade Rosetta Genomics Ltd.’s Stock?

Cantor analyst Sung Ji Nam has high hopes for Rosetta Genomics Ltd. (USA) (NASDAQ:ROSG), upgrading shares to Buy and raising the price target to $5.50 (from $4.00), which represents a potential upside of 35% from where the stock is currently trading. The increased price target and rating is based on the acquisition of PersonalizeDx (PDx) from Abbott Laboratories (NYSE:ABT).

Ji Nam noted, “PDx not only provides immediate scale to ROSG’s business, but brings strong top-line growth momentum. ROSG management believes PDx’s differentiating factors are its expanding depth of expertise for the targeted cancer types and focus on operational excellence. Management also believes there are product synergies, particularly in urologic and lung cancers, and the combined company is targeting 5 novel, proprietary assay launches over the next 12 months.”

However, “We also think there could be near-term integration risks in terms of ROSG carrying on PDx’s growth momentum and realizing synergies around the combined product portfolios, customer channels, and ROSG’s regulatory expertise. We also remain watchful of ROSG’s ability to remain focused and prioritize investment on the best growth opportunities ahead.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sung Ji Nam has a total average return of 14.8% and a 94.1% success rate. Ji Nam is ranked #433 out of 3573 analysts.

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