In a report released on February 9, Tejas Savant from Morgan Stanley maintained a Hold rating on Adaptive Biotechnologies (ADPT – Research Report), with a price target of $7.00.
Tejas Savant has given his Hold rating due to a combination of factors that affect Adaptive Biotechnologies’ financial outlook. The decision is based on the company’s management expressing a cautious stance on guidance for 2024, leading to adjustments in Morgan Stanley’s revenue forecasts. Specifically, around $15 million in potential milestones for minimal residual disease (MRD) has been removed from the projections for 2024 and beyond. Consequently, the updated revenue estimates for Adaptive Biotechnologies are now set at $239 million and $304 million for the years 2024 and 2025, down from the previous $254 million and $319 million, respectively.
Additionally, operating expenses (opex) estimates have been smoothed out through the forecast period, reflecting a more conservative spending approach. Despite these revisions, the report indicates that the Equity Weight (EW) thesis and price target (PT) for the company remain unchanged. This suggests that while near-term expectations have been tempered, the overall investment thesis for Adaptive Biotechnologies does not warrant a change in the stock’s rating at this time. Hence, a Hold rating seems appropriate given the updated, yet still cautious, financial outlook.
According to TipRanks, Savant is an analyst with an average return of -7.4% and a 37.80% success rate.
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Adaptive Biotechnologies (ADPT) Company Description:
Adaptive Biotechnologies Corp. engages in the development of an immune medicine platform. It harnesses the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. Its products and services include immunoSEQ, clonoSEQ, cellular therapy, and vaccines. The company was founded by Chad Robins, Harlan Robins, and Chris Carlson in September 2009 and is headquartered in Seattle, WA.
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