Maxim analyst Jason McCarthy is out today with a research note on shares of Interpace Diagnostics (NASDAQ:IDXG), after the company released first-quarter results, posting $4.8 million in revenues, up 10% sequentially and beating the consensus estimate of $4.3 million. The company reported a net loss of $3.2 million and $12.6 million in cash on the balance sheet.
McCarthy wrote, “Interpace continues to grow revenue from ThyGenX/ThyraMIR and PancraGEN, making 1Q18 the company’s sixth consecutive quarter of revenue growth. In our view, the thyroid platform is the long term growth driver, and the addition of ThyGeNEXT (expected in coming weeks) should help drive market penetration. We are also watching the early stage launches of RespriDX (lung cancer) and BarreGEN (Barrett’s esophagus), which could grow sales as the products gain adoption or attract a partner.”
As such, McCarthy reiterates a Buy rating on IDXG stock, with a price target of $3.00, which implies an upside of 235% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a yearly average return of 4.1% and a 44.1% success rate. McCarthy has a -15.2% average return when recommending IDXG, and is ranked #1268 out of 4800 analysts.
Aside from this rating, IDXG has only received one other analyst rating in the last three months. On May 11, Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on the stock with a relatively bullish $3.00 price target- suggesting that he is aligned with McCarthy’s take on this stock.
Selvaraju noted, “In our view, the reimbursement landscape for the company’s molecular tests have seen continuous enhancement since the beginning of 2018, which should make positive contributions to top-line revenue growth.”
Interpace is a fully integrated commercial and bioinformatics company that provides clinically useful molecular diagnostic tests and pathology services for evaluating risk of cancer by leveraging the latest technology in personalized medicine for improved patient diagnosis and management.