NEW YORK – Investment bank BTIG on Tuesday initiated coverage of bioinformatics and molecular diagnostics company Sophia Genetics with a Buy rating and a price target of $6 per share.
In a research note, BTIG analysts Mark Massaro and Vivian (Vidyun) Bais wrote that they were "impressed by [Sophia's] strong financial profile," citing potential for growth in the US market. Though founded in Europe, Sophia now maintains twin headquarters in Saint-Sulpice, Switzerland, and Boston.
Massaro and Bais wrote that the company's flagship Data Driven Medicine (DDM) software platform is a strong offering because it has multiomic capabilities.
"We expect use cases to expand as newer technologies gain broader adoption in proteomics, digital pathology, and spatial biology, both with researchers (and pharma), as well as with clinicians," according to the analysts. "A key differentiator of [Sophia] is its ability to combine structured data from multiple modalities, whereas traditional approaches often synthesize data/insights from one modality in one centralized, single institution."
Sophia executed an initial public offering in July 2021 that grossed $234 million and netted $217 million. The company's shares were up 17 percent on the Nasdaq Tuesday morning, at $2.41.