Piper Sandler holds Overweight rating for Natera stock on MRD adoption momentum By Investing.com

On Thursday, Piper Sandler reaffirmed its positive stance on shares of Natera Inc . (NASDAQ:), maintaining an Overweight rating and a $120.00 price target. The firm’s analyst expressed confidence ahead of the upcoming readout of Natera’s ALTAIR study results, expected in August, with a full presentation slated for the European Society for Medical Oncology (ESMO) in September.

The analyst emphasized that the ALTAIR study is not viewed as a risky event for Natera, nor is it seen as particularly binary in its outcome. Instead, it is considered one significant step among many in the ongoing adoption of Molecular Residual Disease (MRD) testing.

The firm believes that the broader momentum in MRD is of greater importance than the results of any single clinical trial, impacting areas ranging from adoption across different tissue types to potential reimbursement scenarios.

Piper Sandler’s stance suggests a bullish outlook for Natera’s shares, both leading up to and following the ALTAIR study announcements. The firm indicates that they would advocate buying shares in the event of any sell-off, though they anticipate a positive outcome from the upcoming study results.

The ALTAIR study is part of a series of trials that are expected to contribute to the wider use and acceptance of MRD testing. This form of testing is gaining traction in the medical community for its potential to detect and monitor minimal traces of cancer, which can be critical for patient management and treatment decisions.

The analyst’s reiteration of the Overweight rating and $120.00 price target underscores a continued endorsement of Natera’s prospects in the burgeoning field of MRD testing. This comes as the company prepares to share its findings with the medical community and potentially solidify its position in the market for cancer diagnostics.

In other recent news, Natera Inc. has made significant strides in the genetic testing industry. The company reported a robust 18% sequential revenue increase and a 52% rise year-over-year in Q1 2024, leading to an upward revision of their revenue guidance for the year. This financial performance has been acknowledged by Wolfe Research and Jefferies, both maintaining positive ratings for Natera.

Natera also announced the full redemption of its outstanding 2.25% Convertible Senior Notes due 2027, covering a total principal amount of $287.5 million. In parallel, the company initiated the DECIPHER trial for a novel treatment targeting gastroesophageal adenocarcinoma, employing its molecular residual disease test, Signatera.

Furthermore, Natera is set to present new findings on Signatera at the 2024 American Society of Clinical Oncology Annual Meeting. The company’s recent developments signify its commitment to enhancing personalized genetic testing in oncology.

InvestingPro Insights

As Natera Inc. (NASDAQ:NTRA) gears up for its ALTAIR study results, current metrics from InvestingPro show a company with a strong performance history but facing profitability challenges. With a market capitalization of $13.03 billion and a significant revenue growth of 39.26% in the last twelve months as of Q1 2024, Natera is demonstrating robust financial growth. However, the company’s P/E ratio stands at -34.02, reflecting analysts’ expectations that it will not be profitable this year. This aligns with the company’s substantial 125.31% one-year price total return, signaling investor confidence in the company’s growth potential despite current profitability concerns.

InvestingPro Tips highlight that Natera’s liquid assets exceed short-term obligations, indicating a strong liquidity position. Additionally, the company operates with a moderate level of debt, which could provide financial flexibility. With a high Price / Book multiple of 16.41, the market is valuing the company’s assets at a premium, possibly due to the optimistic outlook on its technology and market position. For investors looking to dive deeper into Natera’s financials and future outlook, InvestingPro offers additional insights and tips that could guide investment decisions. Interested parties can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to a total of 11 InvestingPro Tips for Natera.

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