Canaccord starts Quanterix at buy; PT $27

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Canaccord Genuity initiated coverage of Quanterix (NASDAQ:QTRX) with a “buy” rating and $27 price target. The stock closed at $18.37 on Oct. 9.

“We view Quanterix as a precision medicine pure-play well positioned to disrupt the attractive life sciences research market with its ultra-high sensitive, digital, single molecule array (Simoa) immunoassay instrument platforms, which enable researchers to detect protein biomarkers in blood that have been impossible to detect with conventional analog systems, in areas like neurology, oncology, cardiology, inflammation, and infectious disease,” writes analyst Mark Massaro.

Longer term, he suggested investors own the company as it targets growth across four phases, including expansion in life sciences research, followed by possible entry into several additional attractive markets, such as companion diagnostic assay development, point-of-care diagnostics and precision health and wellness screening, a $38-billion total addressable market.

Quanterix is working with 23 of the top 25 pharma and biotechs by market cap, and its technology is being used in more than 800 Phase 1, 2 and 3 trials. “We think Quanterix is well suited to become a companion diagnostics partner,” he added. Mr. Massaro estimates Quanterix’s 2022 revenue at $100-million.

Stephen Kilmer