HCW cuts CareDx to neutral but ups PT to $15

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H.C. Wainwright downgraded CareDx (NASDAQ:CDNA) to “neutral” from “buy” but raised its price target to $15 from $14, citing the company’s valuation. The stock closed at $15.78 on June 18.

Earlier this month, CareDx held a press conference at the 2018 American Transplant Congress to have doctors talk about the use of AlloSure in their practice.

“Our impression is that doctors are very positive about the utility of AlloSure in monitoring post-kidney transplant patients; thus, we expect near-universal adoption in the coming future,” writes analyst Raghuram Selvaraju.

“In our view, this provides further validation that AlloSure should become the company’s primary revenue growth driver, and we believe its test volume could overtake AlloMap test volume within two years,” he added.

Mr. Selvaraju has raised his 2019 revenue projection for CareDx to $90.7-million from $87.5-million. He also estimated that more than 5,700 and 15,000 AlloSure tests could be performed in 2018 and 2019, respectively.

Jennifer Poland