Quanterix stock target raised to $16 on solid revenue growth

On Wednesday, TD Cowen acknowledged the performance of Quanterix Corp. (NASDAQ: NASDAQ:QTRX) by increasing its price target to $16.00 from the previous $13.50, while retaining a Hold rating on the stock. The adjustment comes after the company reported revenues that were approximately 3% higher than consensus estimates, marking a year-over-year increase of 14%.

Quanterix's Accelerator Lab revenues experienced a notable surge, climbing 36% and surpassing estimates by 10%. However, the company's instrument sales continued to show weakness. On the other hand, sales of consumables grew by 7% year-over-year, which was below expectations.

The company is currently in the process of restating its financial results for the past three years due to non-cash inventory accounting issues, which has delayed the third-quarter audit. Despite these issues, the situation appears to be manageable according to the firm.

Sales of Quanterix's Alzheimer's blood testing, which are still in the early stages, are expected to gain momentum. The firm anticipates that drivers will be in place to support increased traction for these products in 2025 and the years to follow.

In other recent news, Quanterix Corporation has reported a 13% year-over-year increase in Q3 2024 revenues, reaching $35.7 million. This growth was primarily driven by a 36% surge in Accelerator lab services and an 8% increase in consumables, despite a 39% decline in instrument revenue. The company has reaffirmed its full-year revenue guidance of $134 million to $138 million and ended the quarter with a strong balance sheet, boasting $296.1 million in cash and marketable securities.

Quanterix has also launched 16 new products year-to-date and plans for four more by year-end. The company aims to achieve wider adoption of its Simoa technology in immunology and oncology, with a focus on expanding diagnostic capabilities, particularly for Alzheimer's disease. The company expects to reach cash flow breakeven in its RUO business at revenue levels between $170 million and $190 million.

InvestingPro Insights

Recent data from InvestingPro sheds additional light on Quanterix Corp.'s financial position and market performance. Despite the challenges mentioned in the article, the company has shown strong returns over the past month and quarter, with a 29% and 36.18% price total return respectively. This aligns with TD Cowen's decision to increase the price target.

InvestingPro Tips highlight that Quanterix holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, suggesting a solid financial foundation. However, it's important to note that the company is not profitable over the last twelve months, and analysts do not anticipate profitability this year. This context is crucial when considering the company's ongoing restatement of financial results and the potential for future growth in Alzheimer's blood testing sales.

For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Quanterix Corp., providing a deeper understanding of the company's financial health and market position.

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