CareDx stock price target lowered to $22 at BTIG on Medicare reimbursement concerns

Published 13/08/2025, 11:56
CareDx stock price target lowered to $22 at BTIG on Medicare reimbursement concerns

Investing.com - BTIG has lowered its price target on CareDx, Inc (NASDAQ:CDNA) to $22.00 from $26.00 while maintaining a Buy rating on the stock, citing potential impacts from recent Medicare reimbursement proposals. The stock, currently trading at $12.46, has seen significant volatility with a 50% decline over the past six months. According to InvestingPro analysis, the company maintains strong financial health with a current ratio of 3.3x.

The research firm noted that CareDx delivered quarterly results roughly in line with expectations for Q2 and tightened its full-year guidance range while maintaining the midpoint, which calls for revenue of $370 million, representing 11% year-over-year growth. This follows the company’s strong revenue growth of 14.7% over the last twelve months.

CareDx has estimated that the recent Palmetto MolDx draft Local Coverage Determination (LCD), which proposes to limit reimbursement, could impact annual revenue by $15-30 million due to potential limitations on surveillance testing and the company’s bundled HeartCare testing.

BTIG highlighted that CareDx’s fundamentals remain positive, with testing volumes growing 13% year-over-year in Q2, led by kidney testing which grew nearly 20% compared to the same period last year.

The firm noted that CareDx shares currently trade at 1.2 times BTIG’s 2026 revenue estimate of $410 million, which is well below the stock’s historical average range of 3-7 times revenue. InvestingPro analysis suggests the stock is currently undervalued, with additional metrics and 12 exclusive ProTips available to subscribers, including insights on the company’s cash position and shareholder returns.

In other recent news, CareDx Inc. announced its second-quarter 2025 earnings, which showed a mixed performance. The company reported an earnings per share of $0.10, exceeding analysts’ expectations of a $0.10 loss. However, CareDx’s revenue came in at $86.7 million, which was below the anticipated $90.62 million, resulting in a revenue shortfall of 4.33%. Despite missing revenue forecasts, the company’s stock experienced a rise in aftermarket trading. These developments reflect recent activities surrounding CareDx and provide insight into its financial performance.

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