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Investing.com - BTIG raised its price target on Sophia Genetics SA (NASDAQ:SOPH) to $6.00 from $5.00 while maintaining a Buy rating, citing several growth indicators that suggest the company is approaching an inflection point. The company, currently trading at $3.42, has seen its stock rise 7.5% year-to-date despite challenging market conditions.
The research firm highlighted a record number of new customer signings and a newly announced data partnership with AstraZeneca (NASDAQ:AZN) as key positive developments. BTIG noted that Sophia Genetics is doubling the average contract value on newer deals, which is expected to drive up average selling prices and gross margins. InvestingPro data shows the company maintains strong gross margins of 68% and holds more cash than debt on its balance sheet, though it’s currently burning through cash reserves.
BTIG also pointed to dozens of customers nearing implementation of new Sophia Genetics applications, including MSK ACCESS liquid biopsy technology, with 50 customers already signed on. The firm expects these implementations to mark an inflection in revenue growth. The company’s current revenue growth rate stands at 4.7%, with analysts forecasting 13% growth for the next fiscal year.
The research firm introduced 2027 estimates, projecting accelerating revenue growth and forecasting that Sophia Genetics will become adjusted EBITDA positive in the second half of 2027. BTIG models 2027 revenue of $100 million, representing 18% year-over-year growth.
BTIG observed that Sophia Genetics shares currently trade at 1.4 times its 2027 revenue estimate, which it considers below historical averages of 3-7 times and undervalued for a data software business with adjusted gross margins above 74%.
In other recent news, SOPHiA GENETICS SA has announced its annual general meeting of shareholders, scheduled for June 18, 2025. The meeting will occur at 8:00 a.m. EDT / 2:00 p.m. CEST at the company’s headquarters in Rolle, Switzerland. A recent filing with the Securities and Exchange Commission included an invitation for shareholders to attend the meeting. The notice, dated May 8, 2025, provides details about the event, which will be held at the executive office of SOPHiA GENETICS. This development is part of the company’s ongoing communication with its shareholders. The announcement emphasizes the importance of shareholder engagement in the company’s strategic direction. Investors are encouraged to participate in the meeting to stay informed about the company’s plans and decisions.
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