OncoCyte’s Strategic Initiatives and Financial Health Garner Buy Rating

Michael Matson, an analyst from Needham, maintained the Buy rating on OncoCyte (OCX – Research Report). The associated price target remains the same with $4.25.

Michael Matson has given his Buy rating due to a combination of factors related to OncoCyte’s strategic moves and financial management. Firstly, despite a decrease in revenue year over year, primarily due to the sale of a major asset and a downturn in Pharmaceutical Services revenue, OncoCyte is on the brink of launching a new product, GraftAssure RUO, which is expected to precede the release of the VitaGraft Kidney kitted test. The anticipation of these launches and the company’s proactive engagement with transplant centers indicate potential growth and a strengthening of its market position in the near future.
Moreover, Matson’s positive outlook is bolstered by OncoCyte’s effective cost-containment measures which have resulted in a reduced quarterly cash burn. The company’s current financial state suggests that it possesses sufficient capital to sustain operations well into mid-2025. This financial runway gives OncoCyte a valuable buffer to execute its strategic initiatives and transition into a period of commercial growth, which substantiates the Buy rating.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OCX in relation to earlier this year.

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OncoCyte (OCX) Company Description:

OncoCyte Corp. is a pharmaceutical company. It is focused on the discovery, development and commercialization of novel, non-invasive, liquid biopsy diagnostics for the early detection of cancer. The company was founded in September 2009 and is headquartered in Alameda, CA.