BTIG ups Biodesix PT to $17 from $10

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BTIG raised its price target for Biodesix (NASDAQ:BDSX) to $17 from $10, saying “performance this year should restore investor confidence.” The stock closed at $1.61 on April 14.

Analyst Sung Ji Nam writes that the company grew its core business of diagnostic testing and biopharma services by over 40% in 2021, and is continuing to target core revenue growth of 54% to 63% in 2022. 

“We believe Biodesix’s key growth driver this year will be the doubling of the size of the sales force by the end of last year, that should further strengthen the solid commercial momentum the company was able to achieve for the Nodify Lung nodule risk assessment tests (XL2 and CDT) over the last couple of years, despite the pandemic,” she added. 

Ms. Nam said Biodesix also broadly launched GeneStrat NGS liquid biopsy test, with a 52-gene panel and 72-hour turnaround time, earlier this year, which “we believe reinvigorates the IQLung treatment guidance portfolio (GeneStrat and VeriStrat, both with 36-hour turnaround times) for advanced lung cancer.” 

With the stock trading at a multiple of 0.6 times estimated 2023 enterprise value/sales, “we believe Biodesix is significantly undervalued compared with comparable companies, particularly since we expect the company to achieve about 50% core revenue compound annual growth rate through 2023,” Ms. Nam said.