H.C. Wainwright analyst Ram Selvaraju reiterated a Hold rating on CareDx (CDNA) today and set a price target of $28. The company’s shares closed on Friday at $25.61.
Selvaraju wrote:
“Our price target is derived from a market value of the firm at $1,093M, which includes a discounted cash flow analysis based asset value of $1,106M for pre- and post-transplant tests, using a 15% discount rate and 2% terminal growth rate, excluding $13M debt and assuming 39M shares outstanding at the end of 3Q19. Investment risks include: (1) failure of to achieve commercial success due to market size, penetration rate, and/or competition; and (2) potential dilution risk.”
According to TipRanks.com, Selvaraju is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -9.9% and a 28.1% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, Bausch Health Companies Inc, and Fennec Pharmaceuticals Inc.
Currently, the analyst consensus on CareDx is a Moderate Buy with an average price target of $30.67.
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Based on CareDx’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $19.97 million. In comparison, last year the company had a GAAP net loss of $14.27 million.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2018, Fred E. Cohen, a Director at CDNA bought 15,000 shares for a total of $18,300.
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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.
