Needham cuts OncoCyte PT on lower revenue estimates

Insight Molecular Diagnostics

11/11/2022 12:03

** Needham cuts PT on diagnostics company OncoCyte
Corporation  OCX.O  to $1.40 from $2.10; maintains 'buy' rating 
    ** Bases current PT by reducing FY27 sales estimate to $86
mln from $91 mln 
    ** Cuts PT after co reports Q3 rev of $1 mln, below Wall
Street estimates of ~$1.5 mln on Thursday 
    ** Adds co's popular diagnostic test DetermaRx drove ~90%
quarterly revenue
    ** "OCX reduced its headcount and reprioritized its spending
in 2Q22 and we estimate this should allow its current cash to
carry it into 2024" - Needham
    ** Says co has potential for long-term revenue growth by
commercializing its advanced diagnostic tests focused on cancer
and organ transplants 
    ** As of last close, the stock is down ~72% YTD 
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))