Lake Street has increased its price target for OncoCyte (OCX, Financial) from $5 to $8, maintaining a Buy rating. This adjustment follows the announcement that the Centers for Medicare & Medicaid Services (CMS) has significantly raised the reimbursed rate for OncoCyte's product, GraftAssureCore, to $2,753.
The firm believes this development signals a positive trend for future pricing of GraftAssureDx, leading to revised estimates. The analyst conveyed this optimism to the investors, suggesting a favorable outlook for OncoCyte's valuation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for OncoCyte Corp (OCX, Financial) is $5.42 with a high estimate of $8.00 and a low estimate of $4.00. The average target implies an upside of 84.24% from the current price of $2.94. More detailed estimate data can be found on the OncoCyte Corp (OCX) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, OncoCyte Corp's (OCX, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
OCX Key Business Developments
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OncoCyte Corp (OCX, Financial) has finalized its clinical trial design and received central IRB approval, marking a significant milestone in its strategic pivot towards transplant rejection testing.
- The company is on track to submit a data package to the FDA by the end of the year, with FDA approval targeted for the first half of 2026.
- There is strong interest from top transplant centers in the US and Germany to participate in the clinical trial, representing nearly 10% of US transplant volumes.
- OncoCyte Corp (OCX) has successfully expanded its RUO assay to 10 sites across the US, Germany, UK, Switzerland, Austria, and Southeast Asia, with researchers exploring new applications for the tests.
- The company reported Pharma Services revenue of $2.1 million, exceeding expectations and extending its cash runway, with gross margins of 62%.
Negative Points
- Pharma Services revenue is situation-driven and expected to vary, with Q2 revenue anticipated to be less than $500,000, highlighting potential revenue volatility.
- The company's oncology pipeline, while promising, is still in the early stages compared to its transplant focus, indicating a longer timeline for revenue generation in this area.
- OncoCyte Corp (OCX) is undergoing a corporate rename, which, although budget-conscious, may cause temporary brand recognition challenges.
- The company anticipates a couple of quarters with increased cash burn due to clinical trial costs and FDA-compliant software development, impacting financial stability.
- There is uncertainty regarding the speed at which transplant centers will adopt the new test post-FDA approval, as these centers are generally risk-averse and may require time to integrate new technologies.
