This biotech is forecasted to grow 16.10% next year. And four analysts have recently increased their EPS estimates for the company.
Quanterix Corporation (QTRX)
From Canaccord Genuity Research
While it’s difficult to predict the timing of a COVID-19 stabilization, we find it useful to step back and identify companies in our coverage that stand to outperform (on a relative basis) due to their LT growth prospects. This is one of the five companies we are highlighting that share the following key characteristics during a turbulent time in the market:
Reasonable expectations for 1H’20, high visibility, and line-of-sight for growth regardless of “timing issues.”
Established leadership position in underserved, minimally penetrated, and “recession-resilient” markets (i.e. early screening for cancer, treatment/therapy selection, pregnancy testing, brain-health).
Positive comments on Q4 earnings call about the ability to mitigate COVID-19 impact.
A stock price that has pulled back and valuation is not extreme.
Quanterix on its Q4 call that its supply chain and end-user demand remain solid in the midst of COVID-19. While QTRX relies on large pharma partners, and quarterly instrument/consumables revs can be lumpy, we find it hard to ignore the overarching mega-trend that QTRX is capitalizing on: providing protein biomarker services that enable pharma companies to run more efficient, cost-effective, trials with a higher probability of success.
We expect global interest/demand for brain-health research to remain robust in 2020 and we see upside from “call options” in diagnostics, including liquid biopsies. QTRX’s 2020 setup looks achievable and its technological moat is wide.
Max Masucci, Canaccord Genuity Research, www.canaccordgenuity.com, March 10, 2020
Nancy’s Note: Until we make progress in defeating the coronavirus, we expect continued volatility in the markets, and recommend remaining defensive. That doesn’t mean Sell; remember, you don’t have real losses until you sell your stocks. But it does mean being judicious when buying. For the near future, I’m going to include this message as an alert that, certainly, you may buy these recommendations, but for most of us, they will provide entries into a ‘watch’ list that can be acted upon as the volatility disperses. Thank you for your loyalty, and please don’t hesitate to reach out to me with your questions