BTIG initiated coverage of point-of-care diagnostics company, Talis Biomedical, (NASDAQ:TLIS) with a “buy” rating and $18 price target. The stock closed at $12.95 on March 8.
“Consistent with our checks with KOLs … we believe the COVID-19 pandemic has pulled forward by years the obvious (unmet) need for highly accurate, low cost, detection of various diseases at the point-of-care, closer to the patient, delivered accurately, more conveniently, and quickly,” writes analyst Mark Massaro.
Mr. Massaro said the Talis One molecular platform is well-positioned to be a “winner over the coming years,” as the company plans to deploy the approximately 25-minute rapid molecular test for testing indications like COVID, flu, sexually-transmitted diseases and women’s health panels that address a total market opportunity of about $12-billion, or $5.5-billion excluding COVID-19.
“While we expect more testing to migrate out of reference labs, the overall diagnostics testing pie is growing,” he added.
Mr. Massaro said near-term volatility in the stock may persist as well as Street revenue estimates based on changes in the number of new COVID cases, emergence of new COVID variants, and whether vaccines and likely booster shots to come, can contain emerging COVID variants.
“Long term, as Talis ramps its installed base and test menu, we expect investor conversations to center around Talis’ long-term platform value,” he said.
