Piper Jaffray Cuts Price Target on Sequenom (SQNM) as Guidance is Below Street
Piper Jaffray maintained a Neutral rating on Sequenom (NASDAQ: SQNM), and cut the price target to $2.10 (from $2.40), following the company's 4Q earnings report. Sequenom's 4Q15 revenue decreased 24.5% yoy to $27.8M, in line with preliminary results ($27.5M). EPS of ($0.10) came in line with the Street's estimate. 2016 guidance is for $120M in revenue, below the Street's $128.4M estimate.
Analyst William Quirk commented, "Sequenom announced 4Q15 revenue of $27.8M, in line with preliminary results. EPS of ($0.10) was in line with consensus but below our ($0.07) forecast. 2016 guidance is for $120M in revenue, below the Street's $128.4M estimate; 170K NIPT accession guidance missed our estimate (PJC: 178.3K). SQNM signed an in-network contract with Anthem for high and average risk Californian patients. We are positive on the CEO's initial actions and believe op cash breakeven is achievable 4Q17. However, we are still cautious on the company's average risk strategy and the outstanding debt (due 4Q17/1Q18) will require a capital raise, in our opinion. We remain Neutral SQNM shares with a $2.10 price target (was $2.40) based on 2.4x FY17E EV/Rev (unchanged) with our lower price target reflecting our updated forward estimates."
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Shares of Sequenom closed at $1.45 yesterday.