UPDATE: Canaccord Genuity Starts HTG Molecular Diagnostics (HTGM) at Buy

Canaccord Genuity initiated coverage on HTG Molecular Diagnostics (NASDAQ: HTGM) with a Buy rating and a price target of $17. Analyst Mark Massaro noted a strong management team, an attractive market, and promising relationships.

"We believe in the company’s strong and deep management team and strong early relationships with big pharma, biotech, hospitals, diagnostics/sequencing companies and with CROs. Over the next couple of years, we think the company is well positioned to ramp its install base with additional test menu content and win one or more companion diagnostics deals, the latter of which would mark upside that we conservatively exclude from our model," said Massaro.

The analyst added, "We believe a leading indicator to the success of any early-stage company is the caliber of the management team. We view HTG's management as talented, deep and experienced, particularly with the FDA and with pharma. The team formerly served at Ventana Medical Systems (sold to Roche for $3.4B in 2008). We are encouraged with the company’s strong early traction with leading pharma companies and are positive on the company's IVD development agreement with sequencing giant Illumina."

For an analyst ratings summary and ratings history on HTG Molecular Diagnostics click here. For more ratings news on HTG Molecular Diagnostics click here.

Shares of HTG Molecular Diagnostics closed at $13.91 yesterday.

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