NEW YORK (GenomeWeb News) – Investment bank Jefferies today restarted coverage of Complete Genomics with a 'Buy' rating and $20 price target.
Jefferies had recently served as joint book-runner for Complete Genomics' secondary offering, which raised net proceeds of $73.8 million.
Analyst Jon Wood said in the research note today that the bank was raising the price target for Complete Genomics' stock to $20 from $15.50. The increase is based on an expected lower weighted average cost of capital. He said this reflects "greater conviction in the evolution and economic viability of [Complete Genomics'] unique business model and greater confidence in its intermediate-term revenue growth and profit margin expansion trajectories."
Jefferies also noted that it had conducted a follow-up survey among users of next-generation sequencing technologies and services and found that 63 percent of respondents indicated a willingness to outsource human whole-genome sequencing projects to a third-party service provider, up from 37 percent in the survey it took in December 2010. In addition, it noted that more than 70 percent of respondents were now familiar with Complete Genomics' outsourced sequencing services, up from 53 percent in late 2010.
In early Monday trade on the Nasdaq, shares of Complete Genomics were up nearly 3 percent at $17.69.