DermTech slips after glum Q3; analysts see buying opportunity

DermTech

10/11/2021 14:22

** Shares of molecular diagnostics company  DMTK.O  extend
pre-market losses, slipping 15% to $23.87 - lowest since Dec.
2020 - a day after reporting Q3 results
    ** Co reports revenue miss of $3 mln versus estimates of
$3.4 mln; posts wider-than-expected loss per share of 68 cents
versus expected 64 cents, according to Refinitiv data
    ** Cowen says DMTK Q3 was challenged by COVID-19 delta
variant's impact on dermatologist visits, pent-up vacation
demand and Hurricane Ida; as a result, sales rep access to
doctor offices declined to less than 50% of pre-pandemic levels
- Cowen
    ** However, brokerage sees these headwinds as temporary and
create "unique buying opportunity for long-term investors";
Cowen expects DMTK to take significant market share over time as
volume and revenue inflect in coming years
    ** Lake Street Capital Markets echoes the view, saying "Does
a near-term hiccup have any impact on DermTech’s pipeline? No.
That said, shares will trade off on the news, creating a buying
opportunity"
    ** Adds that DMTK's macro is "exciting", involving
non-invasive sampling technology that can deliver genomic-level
insights into several dermatological conditions 
    ** Shares are on track to mark their worst day in nearly two
weeks; stock down 15% YTD

 (Reporting by Anisha Sircar in Bengaluru)
 ((Anisha.Sircar@thomsonreuters.com;))