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UPDATE: Cantor Fitzgerald Upgrades Rosetta Genomics (ROSG) to Buy

April 17, 2015 7:20 AM EDT
Get Alerts ROSG Hot Sheet
Price: $0.43 --0%

Rating Summary:
    2 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - April 17, 2015 9:38 AM EDT)

Cantor Fitzgerald upgraded Rosetta Genomics (NASDAQ: ROSG) from Hold to Buy with a price target of $5.50 (from $4). Analyst Sung Ji Nam is positive on its acquisition of PersonalizeDx and believes it significantly scales Rosetta Genomics' business.

"PDx generated 2014 sales of ~$6.9mm (vs. legacy ROSG's $1.3mm) and expands ROSG lab capacity by ~29,000 sq ft (vs. legacy ROSG's ~6,000 sq ft commercial lab)," said Nam.

"PDx not only provides immediate scale to ROSG's business, but brings strong top line growth momentum (almost three-fold increase in 2014 revenue y/y, despite reimbursement challenges for FISH-based tests) ... We think the transaction cost (~$3.5mm including $2mm in cash plus 500,000 of ROSG shares, or ~0.5x 2014 sales) compares favorably with some of the other recent, comparable deals in the diagnostic space (e.g., CGIX/Gentris for ~1x; NEO/Path Logic for ~0.6x)," added the analyst.

For an analyst ratings summary and ratings history on Rosetta Genomics click here. For more ratings news on Rosetta Genomics click here.

Shares of Rosetta Genomics closed at $3.78 yesterday.



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