On Tuesday, Cantor Fitzgerald adjusted its stock price target for Lucid (NASDAQ:) Diagnostics (NASDAQ:LCUD), lowering it to $3.00 from the previous $3.80. Despite the reduction, the firm maintained its Overweight rating on the company’s shares. The revision follows Lucid Diagnostics’ announcement of its fourth-quarter 2023 operating results and corporate updates.
Lucid Diagnostics reported a fourth-quarter revenue of $1.0 million, which was above the FactSet consensus estimate of $0.8 million but below Cantor Fitzgerald’s expectation of $1.2 million. The company experienced a 15% sequential decrease in volumes, although there was an 87% year-over-year increase to 2,201 tests. This growth was attributed to Lucid’s satellite testing activity and firefighter events.
The firm emphasized the positive impact of Lucid’s second-quarter revenue cycle management upgrade. This upgrade has led to better allowed claims percentages and average allowed payments, which are expected to continue improving towards the company’s Medicare payment rate. With these enhancements in the revenue cycle, Lucid is anticipated to see better collections and payments moving forward.
Cantor Fitzgerald reiterated its Overweight rating on Lucid Diagnostics’ shares, citing the expectation of accelerating volumes and improved financial metrics. The firm’s analysis suggests that these factors, along with the revenue cycle management upgrade, provide a solid foundation for Lucid’s future performance.
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