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On Tuesday, BTIG analyst Mark Massaro adjusted the price target for Lucid (NASDAQ:LCID) Diagnostics Inc (NASDAQ:LUCD), currently trading at $1.50 with a market cap of $83.17 million, to $2.00 from the previous $2.50, while reiterating a Buy rating on the stock. The revision follows Lucid Diagnostics ’ report of a strong fourth quarter, surpassing volume expectations. According to InvestingPro data, the stock has shown remarkable momentum with a 97% return over the past six months. The company also reported significant year-over-year revenue growth for 2024, at 79%, which was attributed to increases in both volumes, by 41%, and average selling prices (ASPs), by 32%. However, InvestingPro analysis reveals the company faces challenges with negative gross profit margins of -63.35% and is quickly burning through cash, highlighting the importance of monitoring its financial health metrics.
The analyst noted the recent inclusion of Lucid’s EsoGuard in the National Comprehensive Cancer Network (NCCN) guidelines as a positive development. This inclusion is expected to potentially expedite coverage of EsoGuard by certain payors, especially following Lucid’s recent health plan payor wins with Highmark BCBS in New York and BCBS of Rhode Island. Lucid has also successfully secured over 20 contracts with concierge medicine providers, which could lead to substantial direct-pay revenue while the company works on expanding its health plan coverage.
Lucid Diagnostics is focusing on a significant unmet medical need with its minimally invasive EsoGuard test, which is designed to screen the approximately 30 million Americans at risk for esophageal adenocarcinoma (EAC). With a Medicare reimbursement rate set at $1,938 per test, Lucid is targeting a substantial total addressable market estimated at around $60 billion.
The revision of the price target to $2.00 is primarily due to the need to account for some dilution stemming from recent financing activities by the company. Despite the adjustment in the price target, the analyst maintains a positive outlook on Lucid Diagnostics’ stock, reiterating the Buy rating. Notably, analyst targets range from $2.00 to $7.00, suggesting significant upside potential. For deeper insights into LUCD’s valuation and growth prospects, including exclusive financial health scores and additional ProTips, explore the comprehensive research available on InvestingPro.
In other recent news, Lucid Diagnostics Inc. reported its fourth-quarter earnings for 2024, revealing a revenue of $1.19 million, which fell short of the anticipated $1.43 million. Despite this, the company achieved a record test volume of 4,042 EsoGuard tests, marking an 84% year-over-year increase. Analysts from Needham raised their price target for Lucid Diagnostics to $3.00 from $2.50, maintaining a Buy rating due to optimistic revenue growth projections. Canaccord Genuity also maintained a Buy rating with a $3.00 price target, highlighting the company’s potential for increased adoption of its EsoGuard test.
Lucid Diagnostics is actively working on expanding its reimbursement coverage for EsoGuard, with new policies recently announced. The company secured a significant NIH grant to expand its cancer screening indications, which could potentially increase its market reach. Additionally, Lucid Diagnostics ended the quarter with approximately $37 million in pro forma cash, supported by a $15 million capital raise in March. The company is optimistic about upcoming Medicare coverage decisions expected in the first half of 2025, which could further boost its financial performance.
These developments indicate Lucid Diagnostics’ focus on enhancing its revenue growth and expanding its market presence through strategic initiatives and partnerships.
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