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On Monday, H.C. Wainwright revised its price target for Personalis (NASDAQ:PSNL) shares, dropping it to $8.00 from the previous $11.00. Despite this reduction, the firm maintained a Buy rating on the company's stock. The adjustment was based on a reassessment of the expected revenue streams and operating expenses for the upcoming years. According to InvestingPro data, analyst targets for PSNL range from $5.00 to $10.67, with the stock showing remarkable momentum, having gained over 346% in the past year.
The analyst at H.C. Wainwright anticipates that the majority of Personalis's near-future revenues will stem from its pharmaceutical tests and services. These expectations are supported by ongoing collaborations with Moderna (NASDAQ:MRNA) and Merck (NYSE:MSD) for a Phase 3 study of the V940 mRNA-based personalized cancer vaccine. Additionally, the company's partnership with Tempus (NYSE:TEM) is expected to contribute to its revenue. InvestingPro data shows the company's strong revenue growth of 24% over the last twelve months, with a healthy current ratio of 4.68, indicating solid short-term financial stability.
While Personalis has not provided specific details regarding the expected reimbursement approval for its NeXT Personal ultrasensitive minimal residual disease (MRD) testing product, the analyst projects approval to occur in the second half of 2025. The strong demand observed so far is seen as a positive sign for the future uptake of the NeXT Personal product.
The financial model adjustments by H.C. Wainwright reflect lower sales forecasts based on the current revenue expectations for 2025 and the subsequent years. The firm also adjusted the operating expenses in its model to align with these revised sales projections.
Looking ahead, the analyst expects that the expanded collaboration agreement with Tempus will start to make a significant financial impact in 2026 and beyond. This long-term outlook underpins the continued Buy rating, despite the near-term adjustments that have led to the lowered price target for Personalis shares. For deeper insights into Personalis's financial health and growth prospects, including 10+ additional ProTips and comprehensive valuation analysis, check out the detailed research report available on InvestingPro.
In other recent news, Personalis, Inc. has reported significant growth and developments. The company's third-quarter 2024 revenue saw a notable 41% year-over-year increase, reaching $25.7 million, largely driven by a 96% surge in biopharma sector revenue. However, it anticipates a decrease in Q4 revenue to between $15 million and $16 million.
In terms of partnerships, Personalis has secured a $50 million strategic investment from Merck and extended its collaboration with Moderna. Analysts from H.C. Wainwright and Lake Street Capital Markets have responded to these developments by increasing the price target for Personalis shares to $11.00 and $9.00 respectively, while maintaining a Buy rating.
The company has also amended its At-the-Market Sales Agreement, introducing Piper Sandler & Co. as an additional sales agent alongside BTIG, LLC. This amendment allows Personalis to issue and sell shares of its common stock directly on the Nasdaq Global Market.
These recent developments highlight Personalis' continued growth and strategic advancements in the genomics field, positioning it well to capitalize on the growing demand for personalized cancer treatments.
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