Prenetics stock steady as Cantor reiterates rating on divestiture news

Published 23/06/2025, 12:38
Prenetics stock steady as Cantor reiterates rating on divestiture news

Investing.com - Cantor Fitzgerald reiterated its Overweight rating and $14.00 price target on Prenetics (NASDAQ:PRE) following the company’s recent business divestiture and cryptocurrency investment. The stock, currently trading at $8.96, has surged over 54% year-to-date, with InvestingPro data showing significant upside potential to the analyst target price.

On June 18, Prenetics announced the sale of its ACT Genomics business to Delta Electronics (TWSE:2308) in an all-cash transaction valued at up to $71.8 million. The company will receive approximately $46 million in gross proceeds following the closing of the transaction. With a current market capitalization of $117 million and a strong financial health score rated as "GOOD" by InvestingPro, the company appears well-positioned for its strategic shift.

Prenetics simultaneously announced the purchase of 187.42 Bitcoin for $20 million, at an average price of approximately $106,700 per coin, with plans to substantially increase its cryptocurrency holdings over time. The company appointed Andy Cheung, former COO of OKEx, to its Board of Directors to provide strategic oversight of its digital asset strategy.

The genomics company will begin accepting cryptocurrency payments across its direct-to-consumer platforms, including IM8 and CircleDNA, as part of its expanded digital asset initiatives.

Following both announcements, Prenetics’ pro-forma cash reserves will total approximately $66 million, according to Cantor Fitzgerald’s analysis.

In other recent news, Prenetics Global Limited reported significant financial developments, including first-quarter 2025 revenue of $17.3 million, marking a year-over-year growth of approximately 170%. This surge was primarily driven by their IM8 and Europa business lines, with the IM8 product line contributing about $5.7 million following its commercial launch. Prenetics has projected a 50% increase in IM8 revenue in the second quarter as it continues to expand its customer base. Additionally, the company has increased its full-year 2025 revenue guidance to $80-100 million, with an expectation of reaching profitability by the fourth quarter of 2025.

In a pioneering move, Prenetics has become the first healthcare firm to acquire bitcoin for its treasury, purchasing 187.42 bitcoin worth $20 million. To support this strategy, Prenetics appointed Andy Cheung, former COO of OKEx, to its board of directors. Cantor Fitzgerald has raised its price target for Prenetics to $14.00 from $13.00, maintaining an Overweight rating due to the company’s strong financial performance and growth trajectory. The company is also focused on divesting its ACT Genomics business and plans to convert its balance sheet to cryptocurrency assets. Prenetics’ shares are currently trading at 0.6 times enterprise value to estimated 2025 revenue, which Cantor Fitzgerald notes is undervalued compared to peers.

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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