U.S. stocks edge higher; solid earnings season continues
Tuesday, Quanterix Corp. (NASDAQ:QTRX) stock received a revised price target from Canaccord Genuity, now set at $15.00, a decrease from the previous $20.00, while the firm sustained a Buy rating on the shares. Currently trading at $7.28, the stock has fallen significantly from its 52-week high of $27.37. According to InvestingPro analysis, Quanterix appears undervalued at current levels. The adjustment follows Quanterix’s fourth-quarter earnings for 2024, which slightly surpassed both the firm’s projections and the FactSet consensus, as well as the company’s own preliminary results announced in January.
Canaccord analysts remain optimistic about Quanterix’s valuation despite acknowledging potential negative investor sentiment stemming from the company’s merger with Akoya Biosciences. The analysts underscored the solid performance Quanterix exhibited in the fourth quarter of 2024, with revenue growing 14.72% over the last twelve months. While challenges might arise due to headwinds in U.S. academic funding, particularly from the National Institutes of Health (NIH), the company maintains a strong financial position with a current ratio of 10.07, indicating robust liquidity. Discover more insights about QTRX’s financial health with a comprehensive InvestingPro Research Report, part of our coverage of 1,400+ US stocks.
The company, which remains committed to its merger with Akoya Biosciences, has been cautioned by management that financial performance could be affected by these academic funding challenges. This has led Canaccord Genuity to adjust their estimates, resulting in the lowered price target for Quanterix stock.
Despite the concerns over U.S. academic funding, Canaccord’s analysts believe Quanterix has the potential to benefit from various factors that could stimulate double-digit revenue growth and support a gradual increase in share value over time. The company’s latest financial results and future outlook reflect a mix of positive performance and caution due to the external funding environment. With a market capitalization of $281 million and strong gross profit margins of 60%, Quanterix shows fundamental strength despite near-term challenges. InvestingPro subscribers can access 8 additional key insights about QTRX’s growth potential and valuation metrics.
In other recent news, Quanterix Corporation reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -$0.30, which fell short of the forecasted -$0.23. The company’s revenue for the quarter was $35.16 million, closely aligning with expectations of $35.25 million. Despite the EPS miss, Quanterix demonstrated solid revenue growth of 11% year-over-year, driven by significant product launches and expansion in the diagnostics market. The company also announced a proposed merger with Acoya Biotech, aimed at enhancing its market capabilities, particularly in immunology and oncology. Analysts have shown interest in this strategic move, which is expected to strengthen Quanterix’s market position. Additionally, Quanterix’s non-GAAP gross margin improved to 57.7%, reflecting a 300 basis point increase over the previous year. The company’s year-end cash position stood at $291.7 million, with a 31% decline in cash usage during the fourth quarter. Quanterix has projected its 2025 revenue to be between $140 million and $146 million, indicating a growth rate of 2-6%.
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