Needham Remains a Buy on GenMark (GNMK)


Needham analyst Michael Matson maintained a Buy rating on GenMark (GNMK) today and set a price target of $11. The company’s shares closed yesterday at $4.74, close to its 52-week low of $3.98.

Matson noted:

“We hosted meetings with Mid-Atlantic region this week. The meetings reinforced our positive view of the company and we think the stock’s recent decline has created an excellent buying opportunity. GNMK’s ePlex has now been on the U.S. market for over a year with a single respiratory panel test. However, GNMK’s blood culture identification (BC-ID) panels should be cleared in early 2019, broadening its menu with differentiated tests that should drive both ePlex placements and annuity per analyzer. And while there are concerns about Medicare outpatient coverage of multiplexed tests, GNMK’s exposure is limited and likely to shrink in 2019. We expect improving yields and increasing volumes to drive GNMK’s gross margin substantially higher over the next few years. And GNMK shares trade at a steep discount to small/mid-cap growth peers.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 10.7% and a 61.4% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for GenMark with a $10 average price target.

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The company has a one-year high of $8.81 and a one-year low of $3.98. Currently, GenMark has an average volume of 366.8K.

Based on the recent corporate insider activity of 101 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.

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