H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on T2 Biosystems (NASDAQ: TTOO) today and set a price target of $14. The company’s shares closed yesterday at $5.64.
Selvaraju wrote:
“Valuation and risks. Our price target is derived from a market value of the firm at $643M, which includes a discounted cash flow analysis based asset value of $685M for T2Dx and test panels, with a 15% discount rate and 0% terminal growth rate, excluding $42M debt and assuming 46M shares outstanding at the end of 2Q19. Investment risks include: (1) failure of to achieve commercial success due to market size, penetration rate, and/or competition; and (2) dilution risk. T2 Biosystems, Inc.”
According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -3.6% and a 35.8% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
T2 Biosystems has an analyst consensus of Strong Buy, with a price target consensus of $12.
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Based on T2 Biosystems’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $12.91 million. In comparison, last year the company had a GAAP net loss of $15.46 million.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock.
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T2 Biosystems, Inc. engages in the development of proprietary technology platform. It offers the T2 Magnetic Resonance technology which enables rapid detection of pathogens, biomarkers and other abnormalities in a variety of unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum and urine, and can detect cellular targets at limits of detection including one colony forming unit per milliliter. The company was founded by Michael J. Cima, Robert S. Langer Jr., Tyler Jacks, Lee Josephson, W. David Lee, and Ralph Weissleder on April 27, 2006 and is headquartered in Lexington, MA.
