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On Monday, Canaccord Genuity reaffirmed its confidence in Natera (NASDAQ:NTRA), currently trading at $168.73 with a market cap of $22.3 billion, by maintaining a Buy rating and a price target of $180.00. Following the release of positive study results related to the company's Signatera test, Canaccord's analysts expressed a highly bullish stance. According to InvestingPro data, the stock has delivered an impressive 156% return over the past year.
The optimism stems from the announcement made on January 25 regarding Natera's participation in two significant clinical colorectal cancer (CRC) studies presented at the ASCO GI conference. In the Phase III CALGB (Alliance) / SWOG 80702 study, the use of Signatera to detect disease-free survival (DFS) and overall survival (OS) benefits after surgery showed promise. The test was also found to be highly predictive of recurrence when administered after surgery and prior to adjuvant therapy. This development aligns with the company's strong revenue growth of 55% over the last twelve months, as reported by InvestingPro.
Additionally, the ALTAIR clinical trial, although not reaching statistical significance in its primary endpoint, showed a significant benefit for a subset of patients with resected oligometastatic stage IV CRC when treated with the FTD/TPI regimen. This finding underscores the potential for clinical benefit in stage IV patients who are Signatera-positive for minimal residual disease (MRD).
The Canaccord analyst highlighted the importance of these results, suggesting that the 702 study readout supports the predictive ability of the Signatera test and could solidify its position as a leader in the MRD testing space. Despite some relatively unfavorable findings in the broader ALTAIR study, the analyst believes the demonstrated predictive value of Signatera is a positive development for Natera.
Natera's stock performance could be influenced by these recent study results, as they may provide additional tailwinds for the company in the near term. The maintained price target reflects Canaccord's anticipation of Natera's continued progress and potential in the precision oncology market. With an overall "GOOD" Financial Health score from InvestingPro and analyst consensus remaining strongly bullish at 1.47 (where 1 is Strong Buy), investors seeking deeper insights can access comprehensive analysis and 11 additional ProTips through InvestingPro's detailed research reports.
In other recent news, Natera Inc . has seen significant developments. Barclays (LON:BARC) has upgraded Natera's stock rating to Overweight with a $200 target, citing the company's impressive expansion into new markets and a revenue growth of nearly 55% over the last twelve months. Analyst Luke Sergott highlighted Natera's success in the minimal residual disease (MRD) space and its growing market share in Organ Health.
In legal proceedings, Natera has broadened its patent infringement litigation against NeoGenomics (NASDAQ:NEO), involving the RaDaR assay. Despite a setback in a false advertising lawsuit against Guardant Health (NASDAQ:GH), Natera plans to request the court to overturn the ruling.
TD Cowen, Baird, and Jefferies have maintained favorable ratings on Natera's stock and raised their price targets, reflecting confidence in the company's future performance. TD Cowen specifically reiterated a Buy rating on Natera shares, raising the price target from $175 to $195.
Natera reported a record Q3 revenue of $439.8 million, marking a 64% increase year-over-year, and conducted 137,000 oncology tests. The company's gross margins reached a record high of 62%, leading to a revision of its full-year revenue guidance to between $1.61 billion and $1.64 billion.
Finally, Natera has amended an agreement with Dr. Rabinowitz, the Executive Chairman, for him to continue his role under certain conditions. These recent developments provide insights into Natera's current status and future prospects.
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