Strong Future Outlook for OncoCyte: Buy Rating and Increased Price Target Amid Positive Partnerships and Financial Efficiency

OncoCyte (OCX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Matson from Needham maintained a Buy rating on the stock and has a $4.25 price target.

Michael Matson has given his Buy rating due to a combination of factors that suggest a strong future outlook for OncoCyte. One of the drivers behind this positive stance is the company’s recent partnership with Bio-Rad Laboratories, which not only infuses OncoCyte with immediate capital but also holds the promise of future investments tied to milestone achievements. This collaboration aims to commercialize OncoCyte’s GraftAssure tests, potentially opening new revenue streams. Matson also notes the company’s success in reducing its cash burn rate, projecting it to stay below $5 million per quarter, which is a positive indicator of operational efficiency and financial management.

Furthermore, the financial results for the fourth quarter of 2023, although exhibiting a decline in year-over-year revenue, still surpassed consensus expectations. This performance, along with a noteworthy increase in Pharmaceutical Services revenue, contributes to the analyst’s confidence in the company. In addition, the recent private placement that OncoCyte secured has generated significant gross proceeds, bolstering the company’s cash reserves and extending its financial runway into mid-2025. Based on these developments, Matson has increased his price target for OncoCyte, reflecting an optimistic valuation grounded in anticipated revenue estimates for the year 2025.

Matson covers the Healthcare sector, focusing on stocks such as Artivion, Hologic, and Paragon 28. According to TipRanks, Matson has an average return of -3.5% and a 43.23% success rate on recommended stocks.

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OncoCyte (OCX) Company Description:

OncoCyte Corp. is a pharmaceutical company. It is focused on the discovery, development and commercialization of novel, non-invasive, liquid biopsy diagnostics for the early detection of cancer. The company was founded in September 2009 and is headquartered in Alameda, CA.