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On Tuesday, Canaccord Genuity reaffirmed its Buy rating on shares of Quanterix Corp (NASDAQ:QTRX) shares, maintaining a $20.00 price target. The endorsement follows Quanterix's preliminary fourth-quarter results for 2024, which aligned with Canaccord's projections and the FactSet consensus.
According to InvestingPro analysis, the company appears undervalued against its Fair Value, despite its stock declining nearly 27% in the past week. With a market capitalization of $425 million, Quanterix maintains a strong balance sheet with more cash than debt. The company's instrument revenue outperformed expectations, marking a 29% sequential increase despite widespread challenges in capital equipment purchasing due to current economic conditions.
Quanterix's financial performance revealed mixed results, with consumables revenue showing no significant change from the previous quarter, indicating modest utilization rates. In contrast, revenue from the company's Accelerator lab and other sources demonstrated a robust year-over-year growth of approximately 34%.
This growth is particularly notable in the context of broader market difficulties. InvestingPro data shows the company's overall revenue growth at 14.72% in the last twelve months, with a healthy gross profit margin of 60%. Get deeper insights into Quanterix's financial health and access exclusive ProTips with an InvestingPro subscription.
The reported figures for the fourth quarter of 2024 did not include $1.5 million in revenue from an order completed in the third quarter of 2024 under an agreement with pharmaceutical giant Eli Lilly (NYSE:LLY).
Canaccord Genuity's commentary also highlighted Quanterix's potential upcoming milestones, particularly in the diagnostics field. The company is expected to complete clinical studies for its Alzheimer's disease tests in 2025 and aims to achieve Advanced Diagnostic Laboratory Test status for these tests, although this may extend beyond 2025.
The recent acquisition of Akoya Biosciences by Quanterix, announced on January 10, 2024, was also mentioned by Canaccord as a strategic move. While acknowledging the inherent risks associated with integration and execution, the analysts believe the acquisition to be a logical step for Quanterix, potentially bolstering the company's position in the life sciences sector.
In other recent news, Quanterix Corporation has shown steady growth with a 12% increase in year-over-year revenue for 2024, amounting to approximately $137.2 million. The company's fourth-quarter revenues also rose, reaching roughly $34.9 million, an 11% increase compared to the previous year. Despite a 6% decline in instrument revenue, other categories showed significant increases, contributing to the overall growth.
Recent developments include Quanterix's acquisition of Akoya Biosciences and Emission Inc., which are expected to drive new growth opportunities and expand the company's technology portfolio. The company also reported a strong financial position, ending the year with cash, cash equivalents, marketable securities, and restricted cash totaling around $292 million.
Analysts from TD Cowen have raised Quanterix's stock target to $16, citing the company's solid revenue growth. Quanterix has launched 16 new products this year and plans for four more by year-end. The company's recent performance and strategic acquisitions signal its commitment to growth and innovation.
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