BTIG initiated coverage of Progenity (NASDAQ:PROG) with a “buy” rating and price target of $12. The stock closed at $7.80 on Oct. 22.
Progenity is one of the top providers of non-invasive prenatal testing (NIPT) and carrier screening services in the U.S. and is on the cusp of launching a differentiated test to address preeclampsia, writes analyst Sung Ji Nam.
Citing Progenity’s competitive market position, coupled with positive recent and near-term catalysts, including recently updated obstetric guidelines recommending NIPT for all pregnancies regardless of risk; continued expansion of in-network contracts; and Progenity’s fourth generation NIPT test launch next year, Ms. Nam said “medium-term top-line growth potential in the low teens is well within reach.”
She said Progenity’s preeclampsia product under development is complementary to the company’s existing product portfolio focused on reproductive health and has the potential to address a significant unmet need in a market segment highly underserved in terms of diagnostic solutions.
“The highest risk/reward opportunity for Progenity, in our view, is the company’s development program for ingestible technology platforms, which, if successful, has the potential to be game-changing for non-invasive diagnostics (vs. endoscopy, colonoscopy), more effective or convenient drug delivery (directly at the disease site) and monitoring applications in the area of GI-related disorders,” Ms. Nam said.
