FLGT - What To Expect From Fulgent Genetics In 2023
2023-05-14 01:47:50 ET
Summary
- We initiate our coverage of Fulgent Genetics with an "outperform" rating and a $42 target price for the next 12 months.
- The company is continuing its Phase 1 clinical trial evaluating the efficacy of FID-007, a nano-encapsulated paclitaxel, in treating various types of cancer.
- At the end of March 2023, total cash and short-term investments were $504.4 million, or about 48% of Fulgent Genetics' current market capitalization.
- From Q4 2022, the company's gross margin began to show positive dynamics again, thanks to reduced reagents and supplies costs and an increase in Fulgent Genetics' core revenue to $62.7 million in the first three months of 2023.
- In the next three months, we expect the company's share price to drop to $29 per share due to continued macroeconomic volatility in some European countries due to the war between Russia and Ukraine and an increased risk of default due to the US government debt ceiling being reached.
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What To Expect From Fulgent Genetics In 2023