Canaccord Genuity Sees GenMark Diagnostics (GNMK) Trading Above Buyout Comps, PT Raised to $24

February 16, 2021 8:52 AM EST
Get Alerts GNMK Hot Sheet
Price: $24.01 +0.08%

Rating Summary:
    2 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 13 | New: 41
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Canaccord Genuity analyst Max Masucci raised the price target on GenMark Diagnostics (NASDAQ: GNMK) to $24.00 (from $22.00) using history to understand the buyout speculation. Two comparable deals, bioMérieux’s acquisition of BioFire and Danaher’s acquisition of Cepheid both took place at 5.6x forward revenue. In a normalized environment, the analyst believes the company could report $210M, up from the $181M currently modeled.

The analyst maintained the Buy rating but noted "If we apply the estimated $210.5M in revenues GNMK may generate in 2021, the company’s EV/Sales multiple stands at ~7.5x, or +33% above the ~5.6x forward multiples Cepheid and BioFire commanded 7 and 4 years ago".

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