HTG Molecular's Profiling System 'Requires Less But Delivers More'

Rodman & Renshaw initiated coverage on HTG Molecular Diagnostics Inc (NASDAQ: HTGM) shares with a Buy rating. The brokerage has a price objective of $5 on the company's stock, citing that the molecular profiling system required less sample material to deliver more.

Analysts Raghuram Selvaraju and Yi Chen think HTG needs to spend less than 10 percent of the traditional methods in its Edge/EdgeSeq system. Therefore, the company could spend less and improve the convenience since it could retain high fidelity in different sample conditions.

The brokerage sees the advantage of consolidating several techniques on a single platform for cancer/tumor profiling. The lead analyst is confident that this would improve the workflow efficiency in a quick turnaround time compared to the conventional methods.

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The lead analyst quoted Markets and Markets to indicate that the global cancer/tumor profiling market could reach $35 billion in 2018.

Another key factor pointed out by Rodman & Renshaw is that HTG intends to introduce a next-generation system next year. The brokerage believes it would focus on the lower-throughput clinical market.

The lead analyst told in a research note, "HTG expects to receive CE IVD Mark for its first clinical assay, ALKPlus, and submit a modular PMA to the FDA in 2016. We anticipate gradual expansion of the HTG EdgeSeq system footprint in the coming years. Strong biopharma collaborations, established install base."

On Friday, the stock shed 0.81 percent to close at $2.44. At time of writing Monday, HTG was up 1.94 percent at $2.51.

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