Needham reiterates Buy rating on Insight Molecular Diagnostics stock

Published 12/08/2025, 12:32
Needham reiterates Buy rating on Insight Molecular Diagnostics stock

Investing.com - Needham has reiterated a Buy rating and $4.25 price target on Insight Molecular Diagnostics Inc. (NASDAQ:IMDX), currently trading at $2.61, citing positive momentum in the company’s product launches and clinical development. According to InvestingPro data, analyst targets range from $4.00 to $8.00, suggesting significant upside potential.

The research firm noted that IMDX’s launch of its GraftAssureIQ research use only test is progressing well, with the company continuing to sign on transplant centers ahead of its planned GraftAssureDx Kidney kitted test launch in mid-2026, pending FDA clearance.

IMDX has advanced into Phase 3 testing, which includes a validation trial of approximately 125 patients. The company expects to sign on at least 20 transplant centers in the US and Germany by the end of 2025, with 14 centers already secured as of the second quarter of 2025.

The company ended the second quarter with approximately $24 million in cash reserves. Management continues to make progress in controlling cash burn, which is expected to remain at approximately $6 million per quarter until the commercial launch of GraftAssureDx.

Needham’s maintained price target of $4.25 reflects confidence in IMDX’s product pipeline and commercial strategy as the company prepares for its anticipated FDA submission and subsequent product launch. With impressive revenue growth of 178% in the last twelve months, InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this $75 million market cap company.

In other recent news, OncoCyte Corp reported its first-quarter 2025 earnings, with pharma services revenue reaching $2.1 million, surpassing expectations due to a substantial late-quarter order. The company is advancing its strategic focus on transplant rejection testing and oncology diagnostics. In addition, OncoCyte is progressing with the introduction of its GraftAssureIQ, co-marketed with Bio-Rad, and is in Phase 3 of its validation trial for the GraftAssureDx Kidney kitted test. The trial involves approximately 150 patients, and the company aims to collaborate with at least 20 transplant centers in the United States and Germany by the end of 2025. Currently, 10 centers are already on board as of the first quarter of 2025. OncoCyte’s efforts have been supported by Needham, which maintained its Buy rating on the company with a price target of $4.25. Meanwhile, Insight Molecular Diagnostics announced that its flagship transplant rejection test kit demonstrated equivalent performance to a commercially available alternative in a study conducted by University Hospital Heidelberg (ETR:HDDG) in Germany. The study evaluated 96 kidney transplant recipients and found consistent results across all biopsy-proven pathology categories.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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