According to Needham, Lucid Diagnostics Inc. (NASDAQ:LUCD) is likely to receive approval for EsoGuard testing-related Medicare reimbursement, which would boost testing volumes.

The Lucid Diagnostics Analyst: Analyst Mike Matson maintained a Buy rating and price target of $3.

The Lucid Diagnostics Thesis: The company completed over 25,000 cumulative EsoGuard tests (DNA tests) through the fourth quarter of 2024 and filed for Medicare reimbursement, which is expected to come through in the first half of 2025, Matson said in the note.

"Given LUCD’s published data, including two clinical validity and utility studies, both demonstrating nearly 100% concordance and negative predictive value (NPV), we expect LUCD to be successful in obtaining Medicare reimbursement," he added.

Check out other analyst stock ratings.

The analyst stated that while waiting for Medicare coverage, Lucid Diagnostics has been able to bill private payors an amount close to the Medicare payment rate of $1,938 per test.

"We expect EsoGuard volume to ramp significantly once LUCD obtains Medicare reimbursement," he wrote.

LUCD Price Action: Following its stock offering on Thursday, shares of Lucid Diagnostics declined by 6.80% to $1.16 at the time of publication on Friday.

Read More: Vertex, Alnylam Best Positioned As Biopharma Braces For Tariff Impact, Goldman Sachs Flags Regeneron, Biogen Risks

Photo: Shutterstock