CareDx's 3-Part Bull & 3-Part Bear Cases
CareDx (NASDAQ: CDNA) was initiated on by four analysts with an average price target of $13.28 (33.5 percent upside).
Mizuho has the highest expectations for CareDX, with a $15 price target.
In its research report, Mizuho laid out three aspects of the bull and bear cases.
- First mover advantage while there are high barriers of entry.
- Expansion beyond its core market, notably heart and kidney.
- High penetration at transplant center and greater utilization for AlloMap sales.
- cfDNA test may not meet efficacy results needed for adoption.
- A lag in revenue from clinical labs.
- A lot of competition in the DNA testing space, which will lead to IP issues.
Analyst Peter Lawson wrote, “CareDx has a stable, growing business in molecular monitoring of heart transplants (an FDA approved test) that has changed patient management, and is expanding into cell-free DNA testing in the larger kidney transplantation market. Catalysts for the stock relate to roll-out and uptake of cfDNA testing and clinical trial data for kidney that establishes clinical utility.”
The $15 price target was derived with peer multiples and a DCF. Shares of CareDx were last up 4.3 percent to $10.45.
Latest Ratings for CDNA
|Aug 2014||Piper Jaffray||Initiates Coverage on||Overweight|
|Aug 2014||Mizuho Securities||Initiates Coverage on||Buy|
|Aug 2014||Raymond James||Initiates Coverage on||Outperform|
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