China chip stocks rally on self-reliance bets, Nvidia scrutiny
On Monday, Canaccord Genuity maintained a Buy rating for Lucid (NASDAQ:LCID) Diagnostics Inc (NASDAQ:LUCD) with a steady price target of $3.00. The stock, which has surged nearly 97% over the past six months and trades near its 52-week high of $1.63, currently appears overvalued according to InvestingPro Fair Value metrics. Following the company’s fourth-quarter revenue report for the fiscal year 2024, which was slightly below expectations, Canaccord Genuity analyst Kyle Mikson reaffirmed the firm’s outlook. Despite a quarter-over-quarter decrease in the EsoGuard effective average selling price (ASP), Lucid Diagnostics saw a significant rise in processed test volume compared to the previous quarter, partly due to large-volume testing events.
Lucid Diagnostics recently announced several new reimbursement coverage policies for its EsoGuard test, alongside notable progress in the direct contracting channel. The company’s management anticipates a material expansion in revenue, supported by these developments. Moreover, there is an expectation for a draft update to the foundational local coverage determination (LCD) covering EsoGuard to be announced by MolDX in the first half of 2025, with a final updated LCD to follow in the subsequent months.
The analyst highlighted the company’s potential for increased adoption levels over time and the anticipated coverage for the EsoGuard test under the foundational LCD, considering these factors as positive indicators for the stock’s future performance. Canaccord Genuity’s stance reflects confidence in Lucid Diagnostics’ growth trajectory and market position.
In other recent news, Lucid Diagnostics Inc. reported a substantial 84% year-over-year increase in the volume of its EsoGuard tests for the fourth quarter of 2024, reaching 4,042 tests. Despite this growth, the company did not meet consensus revenue expectations, reporting $1.19 million in revenue, falling short of the $1.43 million forecast. The earnings per share (EPS) also missed expectations, with a reported -$0.19 compared to the anticipated -$0.17. Needham analysts responded to these developments by raising the price target for Lucid Diagnostics to $3.00 from $2.50, maintaining a Buy rating, citing optimism about future revenue growth. The company ended the quarter with approximately $37 million in pro forma cash, supported by a $15 million capital raise in March. Lucid Diagnostics also secured a significant NIH grant to expand its cancer screening indications, and the company is looking forward to a potential Medicare coverage decision in the first half of 2025. Analysts at Needham project that the gap between revenue and EsoGuard test volume growth will narrow, driven by anticipated increased insurance coverage.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.