Evercore ISI initiates Natera stock with Outperform rating, $170 price target

Published 28/07/2025, 12:20
Evercore ISI initiates Natera stock with Outperform rating, $170 price target

Investing.com - Evercore ISI initiated coverage on Natera (NASDAQ:NTRA) with an Outperform rating and a price target of $170.00 on Monday. According to InvestingPro data, the stock currently trades at $138.90, with analysts’ targets ranging from $37 to $251, reflecting the market’s mixed views on this volatile diagnostics player.

The research firm’s price target represents approximately 20% upside potential from Natera’s current trading levels. Natera, a diagnostics company focused on cell-free DNA (cfDNA) detection, currently has a market capitalization of approximately $19 billion. The company’s financial health score is rated as GOOD by InvestingPro, with particularly strong liquidity metrics showing current assets at 3.87 times short-term obligations.

Evercore ISI described Natera as a high-growth diagnostics company with approximately $1.7 billion in revenue and gross margins in the 60% range. Recent data shows impressive revenue growth of 51.5% over the last twelve months, with actual gross margins reaching 61.79%. The company’s business spans three main segments: oncology, women’s health, and organ health. With earnings scheduled for July 31st, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

In its analysis, Evercore highlighted Natera’s "clear first-mover advantage" in Minimal Residual Disease (MRD) testing within oncology, noting the company has the most clinically validated platform with approximately 80% market share.

The firm also pointed to Natera’s leading position in women’s health diagnostics, where it holds the number one market share position in non-invasive prenatal testing (NIPT) and carrier screening services.

In other recent news, Natera reported its first quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of -$0.50, compared to the forecast of -$0.64. The company’s revenue reached $522 million, reflecting a 37% increase year-over-year. RBC Capital Markets maintained an Outperform rating for Natera, with a price target of $251, citing strong commercial execution and Medicare Advantage expansion as key factors for the company’s success. TD Cowen also expressed a positive outlook, raising its price target from $195 to $200, and highlighted a 13% increase in sales, driven by a 5% rise in core sales and other favorable factors.

Additionally, Natera’s Signatera product demonstrated significant growth, with clinical volumes in the first quarter rising to approximately 17,000, well above the expected 12,000. This represents a year-over-year increase of 52%, alleviating concerns about potential volume issues due to weather-related disruptions affecting some peers. Medicare has expanded coverage for Natera’s Signatera MRD assay to include a wider range of cancers, following a pan-cancer study presented at the 2025 ASCO Annual Meeting. Leerink Partners reiterated an Outperform rating for Natera, maintaining a price target of $220, and highlighted recent developments regarding Medicare coverage for the company’s WGS Signatera assay.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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