Analyst Lu Li of UBS maintained a Buy rating on Fulgent Genetics, with a price target of $30.00.
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Lu Li has given his Buy rating due to a combination of factors influencing Fulgent Genetics’ potential for growth. The company is expected to benefit significantly from its Precision Diagnostics segment, which accounts for approximately 60% of its total sales. This segment is poised for growth due to recent strategic wins, including a substantial contract with Veterans Affairs and a partnership with Foundation Medicine, alongside industry consolidation. These developments, coupled with the expansion of their test menu, position Fulgent to capture a larger market share.
Furthermore, the Anatomic Pathology segment, which makes up around 35% of sales, has shown signs of recovery and is no longer a drag on growth. This segment is projected to continue its upward trajectory, contributing positively to the company’s overall revenue. Additionally, while the therapeutic efforts of Fulgent are not currently a significant value driver, the manageable cash burn and potential positive outcomes from clinical trials in 2026 could further enhance its valuation. These factors, combined with a favorable financial outlook and updated sales forecasts, support the Buy rating.
According to TipRanks, Li is an analyst with an average return of -28.1% and a 0.00% success rate. Li covers the Healthcare sector, focusing on stocks such as QuidelOrtho, Veracyte, and Myriad Genetics.
In another report released yesterday, Raymond James also reiterated a Buy rating on the stock with a $25.00 price target.