RBC maintains Outperform on Natera stock, price target at $251

Published 09/05/2025, 16:04
RBC maintains Outperform on Natera stock, price target at $251

On Friday, RBC Capital Markets reaffirmed their positive stance on Natera shares (NASDAQ:NTRA), maintaining an Outperform rating with a steady price target of $251. The endorsement comes as Natera showcased strong performance in the first quarter of 2025, with the company reporting impressive 51.5% year-over-year revenue growth and increasing its guidance. According to InvestingPro data, Natera has delivered a remarkable 70.14% return over the past year, though current analysis suggests the stock may be trading above its Fair Value. Natera is also on course for significant data releases and product introductions throughout the fiscal year.

According to RBC Capital, Natera’s recent success can be attributed to effective commercial execution and the expansion of Medicare Advantage, both of which have been instrumental in improving the average selling price (ASP) and expanding profit margins. The company maintains a healthy gross profit margin of 61.79% and strong liquidity with a current ratio of 3.87. The firm’s analysts believe that the financial guidance provided by Natera for fiscal year 2025 is within reach, signaling confidence in the company’s projections. For deeper insights into Natera’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and additional ProTips.

The robust quarterly report is further bolstered by Natera’s pipeline of upcoming product launches and data read-outs, which are expected to provide additional opportunities for revenue growth and stock valuation increases. These developments are seen as potential catalysts that could further enhance Natera’s market position in the upcoming year.

RBC Capital’s analysts highlight that the combination of Natera’s solid quarter, raised guidance, and strong pipeline underpins their Outperform rating. The $251 price target reflects their anticipation of continued growth and success for Natera in the fiscal year 2025, driven by the company’s strategic initiatives and expanding product offerings.

In other recent news, Natera has reported its Q1 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of -$0.50, compared to a forecast of -$0.64. The company’s revenue reached $522 million, marking a 37% increase year-over-year. Following these results, Natera raised its full-year revenue guidance to between $1.94 billion and $2.02 billion. TD Cowen analysts have also upgraded Natera’s stock price target from $195 to $200, maintaining a Buy rating due to the company’s impressive performance. Natera’s Signatera product showed significant growth, with clinical volumes rising to approximately 17,000 in the first quarter, a 52% year-over-year increase. The company’s gross margins exceeded expectations by 3%, or 1% after adjustments, indicating stronger operational performance. Natera has also revised its sales guidance upward and indicated an increase in operational expenses, suggesting potential further expansion or investment in its product offerings. These developments highlight Natera’s continued growth and market presence.

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