Anticipated Medicare Coverage and Strategic Positioning Drive Buy Rating for Lucid Diagnostics

Analyst Kyle Mikson CFA of Canaccord Genuity maintained a Buy rating on Lucid Diagnostics (LUCD – Research Report), retaining the price target of $3.00.

Kyle Mikson CFA’s rating is based on the anticipation of Medicare coverage for Lucid Diagnostics’ EsoGuard test, which is expected to significantly boost test volumes and revenue. The company has strategically decided not to heavily invest in commercialization until this coverage is secured, as it believes this will lead to substantial increases in both test volume and average selling price. The imminent Medicare coverage is seen as a pivotal factor that could drive a business inflection, with expectations that a significant portion of test volume will soon be generated by Medicare-related patients.
Kyle Mikson also highlights Lucid’s robust clinical evidence and ongoing studies, which are expected to support broader adoption and potential expansion of indications for the EsoGuard test. The company’s efforts to generate real-world evidence and clinical utility data are seen as critical to obtaining broader coverage and acceptance. Despite recent revenue declines, the comprehensive strategy and expected Medicare coverage are viewed as compelling reasons to maintain a Buy rating, with confidence in the company’s potential for increased market penetration and revenue growth over time.

In another report released yesterday, Needham also maintained a Buy rating on the stock with a $3.00 price target.

LUCD’s price has also changed moderately for the past six months – from $1.010 to $1.280, which is a 26.73% increase.