Canaccord Genuity analyst Mark Massaro maintained a Buy rating on Natera (NTRA) today and set a price target of $25. The company’s shares opened today at $15.58.
Massaro commented:
“We’re positive on the deal, which provides NTRA with $50M of non-dilutive financing upfront, royalties on future BGI revenues, and further decentralization of its testing OUS. We don’t understand why the stock is not up 10-15%+ on this news; regardless, we view this deal as a material positive and would buy NTRA stock here. Natera is one of our top picks for 2019 and trades at just 2.9x Street ’20 revs (below its peak of ~5x just 7 months ago). We reiterate our $25 PT and turn our focus to NTRA’s Q4 call tomorrow night. The deal. Under the 10-year agreement, BGI will pay Natera $50 million in upfront licensing fees and prepaid royalties in Q1. Natera will also receive ongoing royalty payments. Natera will prepay BGI Genomics $6M for sequencing services related to this partnership.”
According to TipRanks.com, Massaro is a 5-star analyst with an average return of 15.6% and a 56.5% success rate. Massaro covers the Healthcare sector, focusing on stocks such as HTG Molecular Diagnostics, Meridian Bioscience Inc, and Quanterix Corporation.
Natera has an analyst consensus of Strong Buy, with a price target consensus of $23.50, which is a 50.8% upside from current levels. In a report released today, Piper Jaffray also reiterated a Buy rating on the stock with a $23 price target.
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The company has a one-year high of $29.62 and a one-year low of $8.60. Currently, Natera has an average volume of 558.7K.
Based on the recent corporate insider activity of 40 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 NTRA in relation to earlier this year.
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Natera, Inc. engages in the discovery, development, and commercialization of genetic testing services. It offers Panorama Non-Invasive Prenatal Test, Horizon Carrier Screening, Spectrum Pre-implantation Genetic Screening and Spectrum Pre-implantation Genetic Diagnosis, Anora Products of Conception, and Non-Invasive Paternity Testing.
