Cantor Fitzgerald stays bullish on Lucid Diagnostics, keeps $3 target
On Tuesday, Cantor Fitzgerald maintained a positive stance on Lucid (NASDAQ:) Diagnostics Inc (NASDAQ:LUCD) by reiterating an Overweight rating and a $3.00 price target on the company’s shares. This affirmation follows Lucid Diagnostics’ announcement of its second-quarter 2024 financial performance and corporate updates.
The company reported second-quarter revenue of $1.0 million, which aligns with the FactSet Consensus and shows a significant year-over-year increase of approximately 514%. The number of tests conducted also saw a substantial rise, with a 31% sequential growth and a 44% increase compared to the same period the previous year, totaling 3,147 tests. This upsurge was attributed to the company’s satellite testing activity and events targeting firefighters.
Lucid Diagnostics notably completed a significant event in collaboration with the Fort Worth Fire Department and Front Line Health, where around 200 firefighters received EsoGuard testing. This event marked the company’s first major directly contracted #CheckYourFoodTube initiative.
The firm expects Lucid Diagnostics to experience better collections and payments moving forward. The anticipation of continued growth in test volumes has contributed to the firm’s decision to reaffirm the Overweight rating on Lucid Diagnostics’ shares.
In other recent news, Lucid Diagnostics has reported substantial growth in its second quarter of 2024, with a significant increase in EsoGuard test volume and a 500% year-over-year rise in revenue, reaching $1 million. Despite the increase in test volume, Lucid missed consensus revenue estimates for the quarter. Needham maintained its Buy rating for Lucid, anticipating an improvement in the company’s revenue growth as it begins to process claims and collect payments.
Lucid is actively working to secure broad coverage and reimbursement for EsoGuard, with productive meetings with CMS MolDX and ongoing market access strategies with commercial payers. However, the company acknowledged a decrease in payment rate due to medically unnecessary claims and a backlog of $12.5 million in claims.
The company is also expanding its involvement in health fair events and direct contracting, hosting over 50 such events, a 60% increase from the previous quarter. Lucid’s cash reserves remain strong at $24.9 million, despite a quarterly burn rate of $10.6 million. These are the recent developments in the company’s operations.”
InvestingPro Insights
As Lucid Diagnostics Inc (NASDAQ:LUCD) garners attention with its Q2 2024 financial results, investors are keen to understand the company’s financial health and market performance. According to InvestingPro data, Lucid Diagnostics holds a market cap of approximately $45.35 million, reflecting its size and investor expectations. Although the company has experienced a remarkable revenue growth of over 379% in the last twelve months as of Q2 2024, it’s important to note that it has a negative P/E ratio of -0.65, indicating that it is not currently profitable.
InvestingPro Tips suggest that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable this year. Additionally, Lucid Diagnostics is quickly burning through cash, which is a critical consideration for investors. Despite a significant return over the last week, the company suffers from weak gross profit margins, and its valuation implies a poor free cash flow yield. For investors seeking a deeper dive into Lucid Diagnostics’ potential, there are over 10 additional InvestingPro Tips available, providing a comprehensive analysis of the company’s financials and market prospects.
These insights and metrics are particularly relevant as they provide a broader context to Cantor Fitzgerald’s positive outlook on Lucid Diagnostics. Investors can explore these financial nuances in greater detail by visiting InvestingPro’s dedicated page for Lucid Diagnostics at https://www.investing.com/pro/LUCD.
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