Zacks Investment Research upgraded shares of Veriteq Corp (VTEQ) from N/A to OUTPERFORM on February 12, 2014, with a target price of $2.00.
VeriTeQ's RFID technology is unique as it is the only one on the market which affords access to UDI information in-vivo, at the point of care and from outside of the body. The company will look to exploit the market for direct part marking of medical devices, demand for which is expected to accelerate as a result of a recent FDA mandate as well as a recent breast implant rupture scare. Commercialization is now underway via an agreement with a breast implant manufacturer. Similar agreements with other, larger breast implant manufacturers could be on the horizon. The RFID technology is also used for radiation dosimetry, a very large market with potential significant opportunity for VTEQ. VTEQ has little operating history and will need to raise significantly more capital to fund operations. As such, an investment in the company is not without meaningful risk. Despite these and other risks, we feel the shares are undervalued and are initiating coverage with an Outperform rating. Our DCF-generated price target is $2.00/share.
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