Leerink resumed coverage of T2 Biosystems (NASDAQ:TTOO) with a “market perform” rating and $5 price target. The stock finished at $6.31 on Wednesday.
“While we view T2’s proprietary T2MR pathogen detection technology and large market opportunity favorably, we are inclined to stay on the sidelines until T2 delivers consistently on instrument placements and strings together a series of solid quarters in line with Street expectations,” writes analyst Puneet Souda.
“And we believe the shares will work again if T2 meets or exceeds the updated timeline and expectations laid out for the T2Bacteria pivotal clinical trial in the first quarter of 2017 and approval in the second half next year,” he added.
T2 initially was planning for trial completion in the third quarter this year and approval in early 2017.