Follow Natera to never miss an important update.
RBC Capital raised its price target from $350 to $460 on Friday. This move follows a week of positive news for the company, including a new approval in Japan and strong data for its lung cancer monitoring test. While the stock has risen quickly and now sits above the average analyst target of $342, this higher target suggests some analysts see more room for growth as Natera's testing becomes a standard tool for doctors. For long-term owners, the focus remains on whether the company can keep growing its testing volume while maintaining the high profit margins it has recently achieved.
Source: RBC Capital
Japan's medical regulator approved Signatera as a companion diagnostic, which is a tool used to see if a specific drug will work for a patient. In this case, the test will help identify which bladder cancer patients are most likely to benefit from the drug Tecentriq after surgery.
This is a meaningful step for Natera's growth outside the U.S. By getting the test cleared for use with a specific treatment, the company makes it much easier for Japanese doctors to order the test and for insurance to pay for it. It reinforces the company's lead in the market for monitoring whether cancer has returned or if a treatment is working.
Source: Business Wire
Natera shared results from the largest study of its kind, showing that its Signatera test can accurately detect molecular residual disease in lung cancer patients. This means the test can find tiny amounts of cancer DNA left in the blood after a patient has surgery, which helps doctors predict if the cancer is likely to return.
These results are important because they support the case for Signatera becoming a routine tool for lung cancer care. For a long-term owner, this is a key part of the company's growth plan. Natera needs its oncology tests to become the standard choice for doctors to maintain its lead in the multi-billion dollar cancer monitoring market.
Source: Business Wire
Redburn Partners set a price target of $385 for the stock, which is higher than the average analyst target of $335. This move follows a period of strong growth for the company's Signatera test, which doctors use to monitor for cancer recurrence. While this specific target is new, it aligns with a broader trend of analysts raising their expectations for the company. Because this is a target price setting rather than a rating change like an upgrade or downgrade, it does not change the overall outlook for the business.
Source: Redburn Partners
UBS set its price target for Natera at $435 on Wednesday. This is well above the average target of $335 from other analysts who follow the company. While the stock has already risen over 40 percent this year, this new target suggests some analysts see room for it to climb another 30 percent as the company expands its cancer testing business.
Source: UBS
Management has a history of setting conservative targets and clearing them, with the business often outrunning forecasts as it scales toward consistent profitability.
| Expectation | |
|---|---|
| EPS | $-0.22 |
| Revenue | $708M |