Analyst Mark Massaro of BTIG reiterated a Buy rating on DermTech (DMTK – Research Report), with a price target of $4.00.
Mark Massaro of BTIG has given a Buy rating to DermTech (DMTK) based on a multitude of factors. DMTK has been growing its revenue by 10% and has been able to decrease its cash burn significantly. Furthermore, DMTK has achieved a 15% increase in ASPs sequentially, thanks to new payors and a record-high contribution from Medicare. The company’s new strategy, driven by CEO Bret Christensen, is centered around growing revenue and increasing volume from areas where payor coverage is already secured. In Massaro’s view, this strategy is sensible and judicious.
Another reason for the Buy rating is DMTK’s planned release of top-line data from its TRUST-II study by the end of 2023, which the company hopes will influence national payors. Massaro believes that DMTK’s unique, non-invasive melanoma test has a large market and he is optimistic about the increasing commercial payor coverage. Furthermore, he feels DMTK’s current EV of -$15M does not truly reflect the company’s value. Along with these factors, DermTech’s Q3’23 total revenue of $3.9M matched the Street’s expectations and surpassed Massaro’s own $3.6M prediction. In Massaro’s opinion, these factors justify the reiteration of his Buy rating for DMTK.
Massaro covers the Healthcare sector, focusing on stocks such as Ginkgo Bioworks Holdings, DermTech, and Exact Sciences. According to TipRanks, Massaro has an average return of -17.8% and a 27.73% success rate on recommended stocks.
In another report released on November 3, Craig-Hallum also assigned a Buy rating to the stock with a $3.00 price target.
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DermTech (DMTK) Company Description:
DermTech, Inc. engages in the development and sale of products for the diagnosis and treatment of skin diseases. It markets and develops products that facilitate the early detection of skin cancers, assesses inflammatory diseases, and customizes drug treatments. Its products include adhesive skin collection kit, pigmented lesion assay, nevome, and carcinome. The company is headquartered in La Jolla, CA.
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