UPDATE: BofA Securities Downgrades Lucira Health Inc. (LHDX) to Underperform
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BofA Securities downgraded Lucira Health Inc. (NASDAQ: LHDX) from Neutral to Underperform with a price target of $9.00.
The analyst comments "Following the Feb. ‘21 IPO, on 4/12 Lucira (LHDX) announced preliminary 1Q21 revenues in the range of $4.0-4.5mn, well-short of our $12.5mn est. After speaking with Mgmt., we learned that the miss was due to a lack of demand for the company’s prescription at-home / POC (point-of-care) test for COVID-19 (C19), as anticipated sales to hospital systems did not materialize due in part to lower disease prevalence. As noted in our initiation report, a key risk was the magnitude and duration of C19 testing demand. Since the IPO, demand for US C19 testing has declined, due in part to the rapid rollout of multiple vaccines. In addition,there is increasing competition in the decentralized molecular and antigen-based testing markets, with many competitors being entrenched larger players (e.g., Abbott, Danaher, Roche, Thermo Fisher, QIAGEN, Becton Dickinson, and Quidel). Also, FDA recently authorized the first molecular OTC (over-the-counter) C19 test from Cue Health (private), and other vendors are expected to enter the market. As such, we downgrade LHDX shares to Underperform given an uncertain commercial strategy, poor visibility into the demand for C19 testing, and increasing competition."
Shares of Lucira Health Inc. closed at $10.60 yesterday.
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