What Made H.C. Wainwright Upgrade CareDx’s Stock?

H.C. Wainwright analyst Ram Selvaraju upgraded CareDx (CDNA) to Buy today and set a price target of $43. The company’s shares closed yesterday at $29.15.

Selvaraju wrote:

“Our 12-month price target is based on an estimated market value of the firm at $1.83B, which includes a discounted cash flow analysis based asset value for pre- and post-transplant tests, using a 10% discount rate and 2% terminal growth rate, and assuming 43M shares outstanding at the end of 1Q20. Investment risks include: (1) failure of to achieve commercial success due to market size, penetration rate, and/or competition; and (2) potential dilution risk. CareDx, Inc.”

According to TipRanks.com, Selvaraju is a 3-star analyst with an average return of 2.7% and a 37.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.

CareDx has an analyst consensus of Strong Buy, with a price target consensus of $38.25.

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Based on CareDx’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $3.76 million. In comparison, last year the company had a GAAP net loss of $8.97 million.

Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is neutral on the stock. Last month, George Bickerstaff, a Director at CDNA bought 4,415 shares for a total of $4,945.

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 discovers, develops, and commercializes diagnostic solutions. Its product includes AlloMap, AlloSure, and Laboratory products. The company was founded on December 21, 1998 and is headquartered in Brisbane, CA.

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