BTIG Research reiterated their buy rating on shares of Organovo Holdings, Inc. (NASDAQ:ONVO) in a report released on Thursday morning. The brokerage currently has a $3.00 price objective on the medical research company’s stock.
“Reset Delays Ramp; Trimming PT From $5 to $3 We are updating our model and price target to reflect Q3 results and a slower than anticipated revenue ramp as a result of the company’s strategy focus toward fast-growing, higher margin compound screening and disease modeling. We continue to feel ONVO is a long-term investment with sizable market opportunities ($3B+) but as the technology is quite new, predicting the rate at which pharma and research partners will adopt this new technology can be tricky. As our model now incorporates more risk in the near-term given the change in strategy, our revised DCF yields a $3 PT, down from $5 previously. We maintain our Buy rating. Commentary on revenue mix is encouraging. In the call, management noted a 60%/40% split between repeat and new orders in the first half of the fiscal year, consistent with the mix seen in Fiscal 2017. Additionally, average revenue per order also continues to rise, driven by the aforementioned shift to higher value disease modeling. Finally, management also suggested the potential for a few of its clients to shift from single project to annual revenue commitment contracts over the next couple of quarters. Valuation: Our price target is $3, based on a DCF analysis that assumes a WACC of 15% and a LT growth rate of 3%. Risks follow on page 6.”,” the firm’s analyst commented.
Other equities research analysts have also recently issued research reports about the company. Zacks Investment Research upgraded Organovo Holdings from a hold rating to a buy rating and set a $2.25 price target for the company in a research note on Wednesday, October 11th. Jefferies Group LLC restated a buy rating and set a $4.00 price target on shares of Organovo Holdings in a research note on Tuesday, September 26th. Citigroup Inc. cut Organovo Holdings to a market perform rating in a research note on Friday, November 10th. Raymond James Financial, Inc. cut Organovo Holdings from an outperform rating to a market perform rating and set a $5.00 price target for the company. in a research note on Friday, November 10th. Finally, BidaskClub cut Organovo Holdings from a sell rating to a strong sell rating in a research note on Tuesday, July 25th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $3.60.
Organovo Holdings (NASDAQ:ONVO) traded up $0.02 during mid-day trading on Thursday, hitting $1.47. The stock had a trading volume of 546,718 shares, compared to its average volume of 1,071,113. Organovo Holdings has a 1-year low of $1.32 and a 1-year high of $4.08.
Organovo Holdings (NASDAQ:ONVO) last posted its quarterly earnings data on Thursday, November 9th. The medical research company reported ($0.09) earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.10) by $0.01. The business had revenue of $1.36 million during the quarter, compared to the consensus estimate of $1.38 million. Organovo Holdings had a negative return on equity of 65.63% and a negative net margin of 923.89%. The firm’s revenue was down 1.4% compared to the same quarter last year. sell-side analysts predict that Organovo Holdings will post -0.36 EPS for the current fiscal year.
Several institutional investors have recently added to or reduced their stakes in ONVO. Ark Investment Management LLC raised its stake in shares of Organovo Holdings by 134.5% during the second quarter. Ark Investment Management LLC now owns 1,445,039 shares of the medical research company’s stock worth $3,800,000 after purchasing an additional 828,787 shares during the last quarter. Vanguard Group Inc. raised its position in Organovo Holdings by 8.5% in the first quarter. Vanguard Group Inc. now owns 4,250,017 shares of the medical research company’s stock worth $13,515,000 after acquiring an additional 333,034 shares in the last quarter. Geode Capital Management LLC raised its position in Organovo Holdings by 44.6% in the first quarter. Geode Capital Management LLC now owns 955,299 shares of the medical research company’s stock worth $3,037,000 after acquiring an additional 294,861 shares in the last quarter. State Street Corp raised its position in Organovo Holdings by 9.7% in the second quarter. State Street Corp now owns 1,697,994 shares of the medical research company’s stock worth $4,463,000 after acquiring an additional 150,837 shares in the last quarter. Finally, Essex Investment Management Co. LLC raised its position in Organovo Holdings by 27.3% in the third quarter. Essex Investment Management Co. LLC now owns 458,774 shares of the medical research company’s stock worth $1,018,000 after acquiring an additional 98,417 shares in the last quarter. Institutional investors and hedge funds own 24.20% of the company’s stock.
About Organovo Holdings
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