H.C. Wainwright analyst Ram Selvaraju downgraded CareDx (NASDAQ: CDNA) to Hold today and set a price target of $15. The company’s shares closed yesterday at $15.78, close to its 52-week high of $16.
Selvaraju commented:
“We currently estimate that over 5,700 and 15,000 AlloSure tests could be performed in 2018 and 2019, respectively. Our current estimated enterprise value of the firm is $545M, up from $510M. Excluding $15M debt and assuming 35.5M shares outstanding at the end of 2Q19, this translates to a per share value of approximately $15. Therefore, we have raised our 12-month price target to $15 from $14 per share. Considering CDNA shares are currently trading slightly above $15 a share, we are downgrading our rating to Neutral from Buy.”
According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 2.4% and a 39.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.
CareDx has an analyst consensus of Moderate Buy, with a price target consensus of $14.
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Based on CareDx’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $8.97 million. In comparison, last year the company had a GAAP net loss of $5.56 million.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CDNA in relation to earlier this year. Most recently, in March 2018, Peter Maag, the President & CEO of CDNA bought 50,000 shares for a total of $27,000.
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CareDx, Inc. operates as a transplant diagnostics company, which offers pre- and post-transplant continuum. It focuses on discovery, development, and commercialization of diagnostic surveillance solutions.
