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Investing.com - Lucid Diagnostics (NASDAQ:LUCD) stock rose after Canaccord Genuity reiterated its Buy rating and maintained a $3.00 price target on the company. The company maintains a strong financial position with more cash than debt and a healthy current ratio of 2.58, according to InvestingPro data.
The reaffirmation came following a Thursday MolDX Contractor Advisory Committee meeting where Medicare Administrative Contractors reevaluated the usage of Lucid’s EsoGuard test for Barrett’s esophagus.
According to Canaccord, meeting attendees expressed support for EsoGuard’s performance and ease of use, noting it could improve adherence to the standard of care, which currently sees compliance below 15% for traditional esophagogastroduodenoscopy procedures.
The firm indicated that EsoGuard is viewed as an effective rule-out test for Barrett’s esophagus and helps expand screening opportunities for gastroenterologists, addressing the unmet need for less invasive testing options.
If MolDX reopens its local coverage determination to include EsoGuard, Canaccord believes this would represent a critical milestone for the company, potentially enabling Lucid to accelerate its commercial efforts despite final reimbursement decisions potentially taking several months.
In other recent news, Lucid Group, Inc. has completed a $300 million investment deal with Uber Technologies, Inc. This investment is aimed at developing autonomous vehicles for a joint robotaxi program, with the manufacturing to take place at Lucid’s facility in Arizona. Additionally, Lucid Group has enacted a one-for-ten reverse stock split, reducing its authorized shares from 15 billion to 1.5 billion. This move, approved by stockholders and the board, reduces the number of outstanding shares from approximately 3.07 billion to about 307.3 million.
The reverse stock split took effect on August 29, with trading on a split-adjusted basis beginning on September 2. Meanwhile, Stifel has lowered its price target for Lucid Group to $2.10 from $3.00, maintaining a Hold rating. This adjustment follows Lucid’s second-quarter results, where revenue slightly exceeded Stifel’s forecast, but gross profit and adjusted EBITDA fell short. These developments reflect the ongoing strategic and financial adjustments Lucid Group is making in the electric vehicle sector.
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