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On Monday, VolitionRX Limited’s stock (NYSE:VNRX), currently trading at $0.56, received a positive assessment from Jones Trading as analyst Justin Walsh initiated coverage with a Buy rating and established a price target of $3.00. According to InvestingPro data, analyst price targets for the stock range from $2.00 to $5.00, suggesting significant upside potential. The new rating is based on the anticipation of a significant partnership in the human health arena, which Walsh believes could provide non-dilutive capital and further validate VolitionRX’s business strategy.
The company’s management is actively seeking a partnership deal to be finalized in 2025, although the exact timing of such agreements is uncertain. VolitionRX has been laying the foundation for partner interest and broader market adoption with the direct sales of CE-marked Nu.Q NETs tests in Europe, marking its first sales in the first quarter of 2025. The company has shown promising revenue growth of 64% in the last twelve months, though InvestingPro analysis indicates it’s currently burning through cash rapidly.
Walsh also noted potential growth opportunities in the animal health sector, specifically with the Nu.Q Vet Cancer test for dogs. Despite a conservative estimate of approximately 3% market penetration by 2034, the analyst suggests that there could be an upside to these projections. With a market capitalization of $57.38 million and an overall Financial Health score rated as ’FAIR’ by InvestingPro, the company shows potential despite current challenges.
The analyst’s comments highlight the strategic moves by VolitionRX to secure its position in the healthcare market through direct sales and partnerships. The company’s efforts in Europe and the potential for expansion in animal health are key factors influencing the analyst’s optimistic outlook and the establishment of the $3.00 price target for VolitionRX shares.
In other recent news, VolitionRx reported its first-quarter 2025 earnings, revealing a larger-than-expected loss per share and a revenue shortfall compared to analyst forecasts. The company posted an earnings per share of -$0.06, missing the forecasted -$0.04, while revenue came in at $250,000, significantly below the expected $1.31 million. Despite these misses, operational expenses declined by 35% from the previous year, reflecting the company’s efforts to streamline operations. Benchmark analysts maintained a Hold rating on VolitionRx as the company focuses on its nucleosomic testing technology, with potential financial gains tied to successful licensing and product development initiatives. The company’s strategy includes securing a licensing agreement with a major in vitro diagnostics firm and expanding its veterinary testing division. Benchmark noted that a successful licensing agreement could lead to the exercise of warrants worth around $7 million. VolitionRx aims to be cash neutral by 2025 and expects to double its Nu.Q Discover revenue, with ongoing discussions for multiple human licensing agreements. CEO Cameron Reynolds highlighted progress in commercializing the company’s technology, emphasizing the potential impact of innovations on saving lives and improving outcomes.
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