NEW YORK (GenomeWeb News) – Four investment firms have started coverage on Complete Genomics, a day after the company reported $4.2 million in revenues for the third quarter.
Both UBS and Jefferies initiated coverage with a "Buy" rating, while Cowen and R.W. Baird gave the Mountain View, Calif.-based next-generation sequencing services firm, which went public in November, an "Outperform" rating.
Jefferies has a price target on the company's shares of $13, an 89 percent increase from Complete Genomics' $6.89 closing price on Monday. Both UBS and Baird have a target of $12 per share, while Cowen didn't place a price target on the stock.
In a research note, Quintin Lai of Baird said that Complete Genomics' focus on providing whole human genome sequencing at an affordable, all-in cost positions it uniquely in the market as researchers will be able to sequence whole humans without having to invest heavily in instrument and infrastructure expenses.
He added that its cost and 99.99 percent accuracy makes the company's service appealing to academic and pharma/biotech researchers, and the service could have clinical applications, especially in cancer research.
The National Cancer Institute and others have used its services, and, "[w]e think sequencing orders from these early adopters will help pave the way for large-scale, statistically powerful, studies to follow," Lai said.
In Tuesday afternoon trading on the Nasdaq, shares of Complete Genomics were up almost 9 percent at $7.48 per share.