Charles Rhyee, an analyst from TD Cowen, maintained the Buy rating on Cue Health (HLTH – Research Report). The associated price target is $0.75.
Charles Rhyee’s Buy rating for Cue Health is predicated on a blend of anticipated regulatory approvals and strategic company initiatives aimed at diversifying its product offerings. Cue Health is currently focusing on expanding its test menu, which Rhyee believes is crucial for the company’s growth and margin improvement. The potential approval of Cue Health’s respiratory syncytial virus (RSV) and influenza (Flu) tests could significantly contribute to the company’s revenue, especially as non-COVID tests are estimated to constitute roughly 25% of Cue Health’s revenue in 2024. Rhyee’s optimism is also underscored by the company’s prior success in obtaining De Novo authorization from the FDA for home use of its COVID test, indicating Cue Health’s capability to meet stringent FDA standards.
However, Rhyee acknowledges the hurdles faced by the company, including the FDA’s refusal to issue an Emergency Use Authorization (EUA) for Cue Health’s Flu+COVID multiplex test. This decision not only impacts the company’s immediate product pipeline but also raises concerns about the timeline and regulatory pathway for upcoming tests. Despite these challenges, Rhyee’s rating takes into account the company’s cost reduction efforts and the strategic priority placed on test menu expansion, which together position Cue Health to potentially recover and realign its trajectory towards profitability, albeit with adjusted expectations and a lowered price target to reflect the recent setbacks.
According to TipRanks, Rhyee is a 4-star analyst with an average return of 4.2% and a 51.41% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as R1 RCM, CVS Health, and Evolent Health.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Cue Health (HLTH) Company Description:
Cue Health Inc is a health technology company. It puts consumers in control of health information and places diagnostic information at the center of care. It enables people to manage health through real-time, actionable and connected health data. Further, it offers individuals, enterprises, government agencies and healthcare providers access to lab-quality diagnostic testing at home, at work, or at the point-of-care, all in a device that fits in the palm of hand.
Read More on HLTH:
