BTIG ups Centogene PT to $23 from $18

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BTIG raised its price target for Centogene (NASDAQ:CNTG) to $23 from $18, citing a “solid execution” in its pharma and diagnostics segments in 2019. The stock closed at $18.69 on April 23.

Analyst Sung Ji Nam writes that 2020 guidance was unavailable, given the uncertainty associated with the COVID-19 impact globally, but Centogene has been able to quickly mobilize COVID-19 testing services.

“Looking ahead to 2020, while we anticipate pharma partnership-related revenue to be more resilient (largely based on existing and recently closed contracts) and geographic diversification of the diagnostic business could help, we believe the overall test volume will be inevitably impacted at least for part of the year, given the unprecedented lockdown measures and the disproportionate healthcare focus on COVID-19 globally,” she added.

Ms. Nam said Centogene began providing COVID-19 nucleic acid testing in March in Germany, and with the opening of a lab in Hamburg, Germany this month, expects to expand testing services for other geographic regions. The company also has a lab facility in Cambridge, MA, “which we believe could be leveraged for COVID-19 testing in the U.S.”

She said the company’s longer-term thesis is intact. “Given Centogene’s unparalleled rare disease database and global physician networks, we believe the company is well-positioned to capitalize on its recent momentum of expanding biopharma partnerships and accelerate its revenue growth over multiple years. We are lowering our 2020 revenue estimate but keeping 2021 revenue unchanged.”