Natera stock gains after Leerink Partners reiterates outperform rating

Published 04/06/2025, 16:50
Natera stock gains after Leerink Partners reiterates outperform rating

On Wednesday, Natera (NASDAQ:NTRA) stock rose following a reaffirmation of its Outperform rating by analysts at Leerink Partners. The analysts maintained a price target of $220.00 for the company, highlighting recent developments regarding Medicare coverage for Natera’s WGS Signatera assay. The stock has shown impressive momentum, delivering a 51% return over the past year, according to InvestingPro data.

Earlier this week, Natera announced that MolDX had granted Medicare coverage for its WGS Signatera assay. This decision comes after the completion of a bridging study that demonstrated comparable performance between the WGS Signatera and the previously launched WES Signatera. The coverage decision implies that reimbursement for the two assays could be similar, although Natera’s management has not confirmed this. The company maintains strong financial health with a current ratio of 3.87 and has achieved remarkable revenue growth of 51.5% over the last twelve months.Discover more insights about Natera’s financial performance and access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

The newly covered indications for the WGS Signatera assay include colorectal cancer, breast cancer, bladder cancer, ovarian cancer, lung cancer, and pan-cancer immunotherapy monitoring. This aligns with the indications already covered by the WES Signatera assay.

Despite the new coverage, analysts expect the WES Signatera to continue dominating Signatera volumes in the near term. However, the WGS Signatera assay might see an incremental increase in usage now that it is eligible for reimbursement. Additionally, the Signatera tissue-free product is anticipated to remain a reflex assay for the WES Signatera.

In other recent news, Natera Inc . reported impressive financial results for the first quarter of 2025, with revenue reaching $522 million, a 37% increase year-over-year. The company’s earnings per share (EPS) exceeded analyst expectations, coming in at -$0.50 compared to a forecast of -$0.64. Following these strong results, Natera raised its full-year revenue guidance to between $1.94 billion and $2.02 billion, indicating confidence in continued growth. RBC Capital Markets maintained an Outperform rating on Natera, citing the company’s effective commercial execution and expanded Medicare Advantage coverage as key factors in its success. Meanwhile, TD Cowen increased its price target for Natera to $200, highlighting a 13% sales growth that surpassed expectations. Additionally, Medicare has expanded coverage for Natera’s Signatera MRD assay to include a broader range of cancers, enhancing access for Medicare beneficiaries. These developments underscore Natera’s growing presence in the oncology market and its strategic initiatives to drive future growth.

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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