CareDx (CDNA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 10. Analyst Matthew Sykes from Goldman Sachs maintained a Buy rating on the stock and has a $14.00 price target.
Matthew Sykes has given his Buy rating due to a combination of factors surrounding CareDx’s latest financial performance and market opportunities. CareDx’s revenue and EPS for the first quarter outperformed expectations, which indicates a solid financial position. Furthermore, the company raised its revenue guidance for 2024, suggesting confidence in continued growth and an improved trajectory. The reiteration of gross margins coupled with an anticipated reduction in adjusted EBITDA losses reflects operational efficiency and a stronger financial outlook.
Sykes’s optimism is further bolstered by CareDx’s recovery from previous billing issues, as evidenced by three consecutive quarters of growth in Testing Services. This growth provides more predictable business operations. The proposed IOTA initiative by CMS is expected to be advantageous for the company, likely boosting kidney testing volumes, which would contribute to CareDx’s future revenue. This anticipated tailwind, along with the company’s ability to differentiate its collections, strengthens the case for a Buy rating.
In another report released on May 10, Craig-Hallum also reiterated a Buy rating on the stock with a $15.00 price target.
CDNA’s price has also changed dramatically for the past six months – from $7.410 to $14.830, which is a 100.13% increase.
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CareDx (CDNA) Company Description:
CareDx, Inc. operates as a transplant diagnostics company,which discovers, develops, and commercializes diagnostic solutions. Its product includes AlloMap, AlloSure, and Laboratory products. The company was founded on December 21, 1998 and is headquartered in Brisbane, CA.
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