Roth Capital Partners launched coverage of Daxor (NYSE American:DXR) with a “neutral” rating and $18 price target. The stock closed at $9.62 on Sept. 27.
Daxor is an investment management company, with a medical device operating division that “we view as the primary asset,” writes analyst Scott Henry. “The impetus for potential appreciation to our price target on Daxor shares is the revenue potential for its approved blood volume analyzer (BVA-100).”
Treating numerous conditions, such as heart failure and syncope, requires monitoring of blood volume, or red blood cells/plasma. However, physicians currently use clinical assessment and surrogate endpoints to assess patient volume. Mr. Henry said the BVA-100 provides a test to perform blood volume analysis with greater specificity, which has been shown to improve outcomes.
“We will review our rating pending the ability of the company to report as an operating company, as opposed to an investment management company, which could increase visibility of revenue streams and reduce the risk profile,” Mr Henry added.