Sam Boughedda

Investing.com — Renalytix AI (NASDAQ:) had a positive start to Tuesday. The company and the American Diabetes Association announced in the European session that they would be collaborating to enhance kidney health for patients suffering from type 2 diabetes.

BTIG then initiated stock premarket with a buy recommendation and a $24 price target. Mark Massaro, analyst at BTIG said that the company could expand its testing label to approximately 37 million patients from twelve million. This would also increase its market potential. 

Massaros stated in a research note that RNLX targets a $11B initial market and is not aware of any competitors. RNLX has the potential to expand its testing label, which could be expanded from 12 million patients to 37 million and increase its market opportunities. RNLX believes it is in a position to reap the benefits of proactive precision medicine. This is an approach that is widely used for early detection and treatment. However, this has not been tried to treat kidney disease.

Renalytix’s U.S.-listed shares rose immediately at the open to $17.83. But the momentum soon lost steam and the stock price closed the day with a loss of 0.26%. Additionally, shares listed in London closed flat at 620p per Share.