On Dec 27, 2014, Zacks Investment Research upgraded Fluidigm Corporation (FLDM) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Fluidigm’s impressive product portfolio and strong growth opportunities across both production genomics and single-cell genomics applications are the primary factors justifying the upgrade.
Last month, Fluidigm announced a new workflow that will enable high throughput single-cell mRNA sequencing at a lower cost. The high throughput workflow will be the latest addition enabled on the Fluidigm C1 Single-Cell Auto Prep System which aids researchers in isolating, processing and profiling individual cells. The full commercial version of the workflow is expected to be accessible in the first half of 2015.
In the third quarter (ending Sep 30, 2014), approximately 60% of the BioMark HD system sales were motivated by single-cell research. The introduction of the new workflow is expected to further enhance the growth prospects of this division.
During the quarter, Fluidigm launched the Single-Cell Whole Exome Sequencing Application for the C1 system. The company also started an early access program for its upcoming Juno genotyping machine.
Furthermore, both earnings and revenues beat their respective Zacks Consensus Estimates in the third quarter. This developer and seller of microfluidic systems has delivered positive earnings surprises in all the last 4 quarters, with an average beat of around 32%.
We believe that Fluidigm’s significant product launches will propel further growth going forward. Also, the long-term expected earnings growth rate for the company stands higher at 25% compared with industry growth of 17.2%.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2014 remained steady at a loss of $2.04 per share over the last 30 days. Similarly, for fiscal 2015, the Zacks Consensus Estimate remained unchanged at a loss of $1.56 per share over the same time frame.
Other Stocks to Consider
Other stocks worth considering in the medical instruments industry include Inogen, Inc. (INGN), Luminex Corporation (LMNX) and Globus Medical, Inc. (GMED). While both Inogen and Luminex sport the same Zacks Rank as Fluidigm, Globus Medical carries a Zacks Rank #2 (Buy).
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