Applied DNA Sciences Poised for Growth with Strategic Alliances and Revenue Uptick: A Buy Rating

In a report released today, Yi Chen from H.C. Wainwright reiterated a Buy rating on Applied DNA Sciences (APDN – Research Report), with a price target of $7.00.

Yi Chen has given his Buy rating due to a combination of factors including the positive sequential growth in revenue and strategic manufacturing agreements. In F2Q24, Applied DNA Sciences reported an increase in revenue to $930K from the previous quarter, despite a year-over-year decline. This growth surpassed Yi Chen’s projections and reflects a potential upward trend in financial performance. Additionally, the company has shifted its focus towards meeting customer demands for Good Manufacturing Practice (GMP) standards, which could enhance its position in the clinical-stage mRNA therapy development market.

Furthermore, the partnership with Alphazyme LLC to scale-up manufacturing of Applied DNA’s proprietary Linea RNA polymerase is a significant development. This agreement is expected to enable the company to meet the increasing demand for its Linea IVT platform, which offers advantages in mRNA yield and production workflow. Yi Chen’s valuation of the company at approximately $28M, with a price target of $7 per share, takes into account the potential of the company’s clinical laboratory services and biotherapeutic manufacturing. However, it’s important to note that risks such as market adoption and potential dilution are also considered in the analysis.

According to TipRanks, Chen is an analyst with an average return of -24.5% and a 26.60% success rate. Chen covers the Healthcare sector, focusing on stocks such as Ocular Therapeutix, Aslan Pharmaceuticals, and Icecure Medical.

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.

Applied DNA Sciences (APDN) Company Description:

Applied DNA Sciences, Inc. engages in the provision of security solutions. It offers molecular-based technology solutions and services that can help protect products, brands, supply chains, and intellectual property of companies, governments, and consumers from theft, counterfeiting, fraud, and diversion. Its products include the following brands: Applied DNA Sciences, SigNature, molecular tags, SigNature, T molecular tags, fiberTyping, DNAnet, digitalDNA, SigNify, BackTrac, Beacon, and CertainT. The company was founded in 1983 and is headquartered in Stony Brook, NY.