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Investing.com - BTIG has reiterated its Buy rating and $2.50 price target on Lucid Diagnostics Inc (NASDAQ:LUCD) following the company’s successful $25 million capital raise announced Wednesday. The stock, currently trading at $1.02, has shown strong momentum with a 55% gain year-to-date, according to InvestingPro data.
The capital raise strengthens Lucid’s balance sheet, with BTIG estimating the company’s pro-forma cash balance will increase to approximately $58 million, extending its cash runway by roughly three quarters. With a current ratio of 1.15 and revenue growth of 14.74% in the last twelve months, the company maintains moderate financial stability despite being in growth phase.
BTIG noted that raising capital in the current environment is challenging, particularly for small-cap companies that have not yet achieved profitability.
Lucid faces a significant potential catalyst with an anticipated Medicare coverage determination for its Esoguard test, with BTIG expecting a possible positive draft LCD within approximately 2-3 months.
The company’s EsoGuard test addresses a large unmet need in screening for esophageal adenocarcinoma (EAC), with eligibility to screen approximately 30 million Americans at risk and a Medicare price of $1,938 per test, implying a total addressable market of approximately $60 billion. With a market capitalization of $129.4 million, the company appears undervalued according to InvestingPro’s Fair Value analysis.
In other recent news, Lucid Diagnostics Inc. announced the pricing of its public offering, intending to raise approximately $25 million through the sale of 25 million shares at $1.00 per share. This move follows the company’s earlier announcement of its plan to offer shares to support working capital and general corporate purposes. Analysts at Needham reiterated a Buy rating on Lucid Diagnostics, maintaining a price target of $3.00 after a positive Contractor Advisory Committee meeting highlighted the effectiveness of the company’s EsoGuard test. Similarly, BTIG raised its price target for the company to $2.50 from $2.00, citing positive feedback from a Centers for Medicare & Medicaid Services meeting regarding Medicare coverage for EsoGuard.
In addition, BTIG reiterated its Buy rating and a $2.00 price target following Lucid Diagnostics’ Q2 results, noting that the company’s performance aligned with expectations. The focus remains on an upcoming Medicare meeting in 2025, which is expected to draw significant attention from investors. These developments come as Lucid Diagnostics continues to gain support for its EsoGuard test, which boasts a 99% negative predictive value for screening esophageal adenocarcinoma. The company has granted underwriters a 30-day option to purchase up to an additional 3.75 million shares in the public offering.
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