Zacks analyst Grant Zeng was out pounding the table on Rosetta Genomics Ltd. (USA) (NASDAQ:ROSG), reiterating an Outperform rating and a $10.50 price target, which represents a potential upside of 185% from where the stock is currently trading.
Zeng noted, “With accelerated revenue growth, Rosetta will become profitable in fiscal 2018 with earnings per share (EPS) of $0.32 based on total revenue of $50 million. EPS will grow to $1.31 per share in fiscal 2010 based on total revenue of $125 million, a 102% increase in the two year period. Recent two partnerships will accelerate revenue growth in 2015 and beyond. With all these in mind, we think Rosetta s shares are undervalued at current market price. Currently, Rosetta shares are trading at about $3.8 per share, which values the company at about $46 million in market cap based on 12 million outstanding shares. This is apparently a huge discount compared to its peers. As we said, Rosetta is a revenue generating diagnostics company targeting the high growth market of molecular diagnostics. The company s microRNA platform technology has broad applications targeting both diagnostics and therapeutics. We don t think the Street has recognized the potential of high revenue growth in the coming years for Rosetta.”
Furthermore, “Execution is the key to achieve expected growth and will have a significant impact on the share price. The fluctuation of the broader market in the US will also have impact on the company s share price in the next 6 to 12 months. In general, we think the company has a favorable risk/award profile at this time with downside risk relatively low and high upside potential.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Grant Zeng has a total average return of 155.6% and a 85% success rate. Zeng is ranked #34 out of 7723 total experts