H.C. Wainwright analyst Ram Selvaraju reiterated a Hold rating on CareDx (NASDAQ: CDNA) today and set a price target of $17. The company’s shares closed yesterday at $14.97, close to its 52-week high of $16.
Selvaraju wrote:
“Our price target is derived from a market value of the firm at $615M, which includes a discounted cash flow analysis based asset value of $628M for pre- and post-transplant tests, using a 15% discount rate and 2% terminal growth rate, excluding $13M debt and assuming 36.5M shares outstanding at the end of 2Q19. Risks include: (1) failure of to achieve commercial success due to market size, penetration rate, and/or competition; and (2) potential dilution. CareDx, Inc.”
According to TipRanks.com, Selvaraju is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -1.7% and a 36.4% 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 $17.
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Based on CareDx’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $14.06 million. In comparison, last year the company had a GAAP net loss of $3.97 million.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock.
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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.
