Progenity May Gain 105% Over the Year. What do Analysts Say?

Stock prices naturally fluctuate based on several factors like earnings results or the macro environment. So, investors try to time the market and thus determine when stocks have hit the bottom as they prefer to buy shares at a lower price. However, in practice, executing this strategy is no easy task. It’s especially difficult now. The volatility has ruled the markets over the last few weeks. Thankfully, Wall Street experts share advice about the stocks which are a strong-buy.

Progenity is one of the stocks considered a Buy in September. It specializes in providing testing services, offering clear and actionable genetic results.

In June, the company started trading on Nasdaq. Its shares plummeted down by 44% since then. As a result, the stock is trading for $8.11 currently. Several members of the Street recommend buying it before the shares skyrocket once more.

Progenity performed well in the second quarter

Piper Sandler analyst Steven Mah stated that even against coronavirus’s backdrop, Progenity managed to deliver with its second-quarter 2020 performance.

He added that while Progenity did not provide guidance, June’s test volumes of ~28,000 were strong. That showcases the durability of its reproductive tests, as well as the success that the company has in co-marketing. Despite the pandemic disruptions, the stock was able to maintain its leading pre-COVID test turnaround times.

Furthermore, the fourth generation NIPT (single-molecule counting assay) test was able to measure the fetal fraction. The company plans to continue its development in 2021.

This technology could potentially be applied to RNA, DNA, epigenetic markers, and proteins for additional clinical applications such as oncology. So, the analyst is looking forward to completing the preeclampsia verification in the fourth quarter of 2020 and a possible 2H21 launch.

Mah believes that Progenity shares received a low evaluation considering the robust recovery in the core testing business. Mah rated this stock as a Buy and gave it a $17 price target. Shareholders could received 105% throughout the year with this company.