Needham Remains a Buy on GenMark (GNMK)

Needham analyst Michael Matson reiterated a Buy rating on GenMark (GNMK) today and set a price target of $12. The company’s shares closed yesterday at $6.82.

Matson commented:

“GNMK’s 4Q18 revenue was consistent with its preannouncement while its EPS missed consensus. Management provided 2019 revenue guidance that was above consensus at the mid-point and ePlex placement guidance that was above our estimate at the mid-point. GNMK placed 42 ePlex systems in 4Q18, down from 45 in 3Q18 but above our estimate of 39. We believe the 4Q18 results provide further evidence that ePlex is gaining momentum while GNMK works out its manufacturing growing pains. We think an expanding test menu should help drive ePlex placements and utilization 2019 and we reiterate our Buy rating.”

According to TipRanks.com, Matson is a top 100 analyst with an average return of 13.7% and a 69.1% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

GenMark has an analyst consensus of Strong Buy, with a price target consensus of $9.67, a 41.8% upside from current levels. In a report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $10 price target.

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Based on GenMark’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $10.99 million. In comparison, last year the company had a GAAP net loss of $14.54 million.

Based on the recent corporate insider activity of 104 insiders, corporate insider sentiment is negative on the stock.

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GenMark Diagnostics, Inc. is a molecular diagnostics company, which engages in the development and commercialization of proprietary eSensor electrochemical detection technology. It also manufactures, sells, and supports instruments and molecular tests. The company was founded by Jon Faiz Kayyem on February 12, 2010 and is headquartered in Carlsbad, CA.