H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Cancer Genetics (NASDAQ: CGIX) today and set a price target of $3. The company’s shares closed yesterday at $1.08, close to its 52-week low of $0.82.
Selvaraju commented:
“Valuation methodology and risks. We utilize a discounted cash flow-based approach, which generates a total value of roughly $120M, net of debt; this yields a price per share of $3.00, projecting 39M shares as of mid-2019, including the issuance of shares and warrants associated with the most recent equity financing and further dilution over the course of the next 12 months, including the full conversion at $0.80 per share of $2.6M, which was raised in July 2018 via issuance of a convertible note to a single institutional investor—to bridge the gap to sustainable profitability.”
According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 1.1% and a 42.9% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.
Cancer Genetics has an analyst consensus of Moderate Buy, with a price target consensus of $3.
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Based on Cancer Genetics’ latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $3.63 million. In comparison, last year the company had a GAAP net loss of $2.77 million.
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Cancer Genetics, Inc. engages in the development, commercialization, and sale of molecular and biomarker-based tests and services. Through its Select One Clinical Trials program, the firm provides a range of clinical trial services for both oncology and non-oncology genetic testing such as bioinformatics, biomaker solutions, biorepository solutions, consulting, cytogenetics testing, nucleic acid extraction and purification, flow cytometry, Focus::NGS Panel, gene expression analyses, genotyping, and pharmacogenomics. The company was founded by Raju S. K. Chaganti on April 8, 1999 and is headquartered in Rutherford, NJ.
