H.C. Wainwright analyst Ram Selvaraju reiterated a Hold rating on CareDx (NASDAQ: CDNA) today and set a price target of $22. The company’s shares closed yesterday at $26.04, close to its 52-week high of $27.55.
Selvaraju said:
“Our price target is derived from a market value of the firm at $790M, which includes a discounted cash flow analysis based asset value of $803M 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 3Q19.”
According to TipRanks.com, Selvaraju is a 2-star analyst with an average return of 0.4% and a 42.5% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.
Currently, the analyst consensus on CareDx is a Moderate Buy with an average price target of $20.
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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. Last month, Fred E. Cohen, a Director at CDNA bought 15,000 shares for a total of $18,300.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.
