LHDX - Lucira initiated neutral at BofA citing uncertainty over COVID-19 test market

Bank of America Securities has initiated the coverage of Lucira Health ([[LHDX]] -6.9%) with a neutral rating as the firm, despite being optimistic over the company’s technology, questions the long-term viability of the market for COVID-19 testing.The maker of LUCIRA COVID- 19 All- In- One Test Kit is given a price target of $22.00 per share by the analyst Derik de Bruin and the team implying only ~13.5% of upside to the previous close.Noting “What will be the level of C19 testing once herd immunity is reached”? as a key question concerning COVID test-leveraged stocks, the analysts cite the need for more clarity over the COVID-19 testing market in relation to its sustainability of the competitive environment.However, Seeking Alpha contributor Real Finance with a bullish rating on Lucira expect the demand for COVID-19 testing to last ‘many years.’

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Lucira initiated neutral at BofA citing uncertainty over COVID-19 test market