Rodman & Renshaw Starts Nanosphere (NSPH) at Buy

Rodman & Renshaw initiated coverage on Nanosphere (NASDAQ: NSPH) with a Buy rating and a price target of $2.00. Analyst Yi Chen sees significant sales growth for its Verigene platform.

"In our view, the company’s Verigene system and test panels are differentiated from competing systems in that it is based on the gold nanoparticle technology for direct detection of pathogens without the use of PCR, and it offers test and pricing flexibility while having multiplex capacity (identifying multiple targets in one test). The currently-marketed Verigene system received FDA approval in 2009. Nanosphere’s FDA-approved test menu now offers respiratory panels, blood stream infection panels and gastrointestinal panels. The company reported $21.1M in revenue for 2015, exceeding its prior guidance of $18 – 20M and representing a 47.5% growth rate over $14.3M for 2014. Management expects to submit the next generation Verigene Flex system for regulatory approval in 3Q 2016, and has provided 2016 revenue guidance to be $28 – 30M. We expect Nanosphere to continue to record substantial revenue growth in the coming years, based on increasing hardware placement and expanded and flexible menu offerings. Our current 2016 revenue projection is $29.8M."

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

Shares of Nanosphere closed at $0.87 yesterday.

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