OncoCyte (OCX) has received a new Buy rating, initiated by Lake Street analyst, Thomas Flaten.
Thomas Flaten has given his Buy rating due to a combination of factors that highlight OncoCyte’s strategic positioning and potential for growth. The company is poised to revolutionize the transplant rejection testing market by enabling transplant centers to conduct OncoCyte’s VitaGraft Plus test in-house, which could significantly reduce costs and turnaround times. This strategic shift not only promises to return control of testing to the centers but also aligns economic benefits with both the centers and OncoCyte.
Additionally, OncoCyte’s focus on transplant rejection testing, particularly with its dd-cfDNA technology, is supported by a validated biomarker that is already widely accepted in the U.S. market. The company’s recent operational changes, including a reduction in core expenses and strategic partnerships, position it well for the anticipated FDA submission and commercial launch. Despite the stock’s recent decline, Flaten sees this as an undervaluation, presenting a compelling entry point for investors with a long-term perspective.
According to TipRanks, Flaten is an analyst with an average return of -8.7% and a 31.12% success rate. Flaten covers the Healthcare sector, focusing on stocks such as Harrow Health, Aquestive Therapeutics, and Personalis.
In another report released on March 25, Needham also maintained a Buy rating on the stock with a $4.25 price target.