Wall Street Thinks OpGen Inc. (NASDAQ: OPGN) Is Undervalued


There is growing optimism on Wall Street that OpGen Inc. (NASDAQ: OPGN) could be an attractive investment especially for investors with a long-term outlook. Despite gaining more than 94% this year, some analysts believe that shares of OpGen are still undervalued and that is because not many investors appreciate its potential.

The product of OpGen Inc. (NASDAQ: OPGN) that is making analysts excited about the stock is QuickFISH assays. For instance, the analysts at Rodman & Renshaw cited the revenue potential of QuickFISH when they recently initiated their coverage of OpGen with a BUY rating. The analysts have a price target of $2.50 on the stock.

Differentiated platform

There are so many companies selling to pathogen testing market, but what makes OpGen stand out from the crowd is that its QuickFISH is highly differentiated. Because of that, customers are finding that using QuickFISH saves them time given that they can achieve turnaround time of less than 30 minutes. The shorter turnaround time of QuickFISH means that it helps in cutting costs.

The reason QuickFISH carries a shorter turnaround time than the competition is that it makes use of a unique technology called peptide nucleic acid (PNA). The technology allows for complete cell visualization as well as analysis without the need for amplification measures such as cell targeting or cell lysis

Revenue estimate

As QuickFISH platform becomes more popular with target customers, analysts believe it will significantly boost OpGen Inc. (NASDAQ: OPGN)’s revenue. The company generated revenue of $3.2 million for 2015, but the analysts at Rodman & Renshaw now estimate that revenue for 2016 could spike to $4.4 million. The projected revenue growth is expected to be aided by QuickFISH tests.

It is worth pointing out that QuickFISH tests contributed a major portion of the revenue generated in 2015.

What about OpGen Inc. (NASDAQ: OPGN) profitability?

Though OpGen Inc. (NASDAQ: OPGN) is still a loss-machine, posting a wider EPS loss of $1.40 in 2015 compared to $1.33 in the prior year, analysts at Rodman & Renshaw see it moving closer to profitability. The analysts are projecting that the company will attain breakeven in 2021 and become profitable thereafter. Peak sales are expected to hit $120 million by 2029.


Leave A Reply