Canaccord Genuity has maintained a Buy rating on Natera (NASDAQ: NASDAQ:NTRA) with a price target of $145. The firm highlighted Natera's recent announcement regarding its presentation of new data from the GALAXY observational arm of the CIRCULATE-Japan trial at the upcoming 2024 European Society for Medical Oncology (ESMO) Congress, set to take place from September 13-16.
The data reportedly shows a significant advantage for colorectal cancer patients testing Signatera-negative in terms of overall survival compared to those tested with guideline-recommended biomarkers.
Natera's presentation on Sunday included findings that indicate a tenfold improvement in overall survival for patients without detectable molecular residual disease, which is measured by the company's Signatera test. Canaccord Genuity's note pointed out that these results are promising when contrasted with other biomarkers currently recommended by guidelines.
Looking ahead, Natera is anticipated to provide a top-line data readout from the ALTAIR study around January 2025. The outcomes of these studies could potentially result in the inclusion of Signatera in National Comprehensive Cancer Network (LON:NETW) (NCCN) guidelines and lead to broader commercial coverage for the test.
Natera reported significant growth in its Q2 results, with a 12% sequential revenue increase from Q1 and a 58% surge year-over-year. The company has also raised its full-year revenue guidance to approximately $1.5 billion, anticipating a gross margin of 55%. Furthermore, it saw a record number of test volumes and an increase in average selling prices.
InvestingPro Insights
As Natera (NASDAQ:NTRA) garners attention with its promising data presentations and positive analyst ratings, real-time metrics and InvestingPro Tips offer an additional perspective on the company's financial health and market performance. Natera's market capitalization stands at $14.55 billion, reflecting its substantial presence in the industry. Despite a high Price / Book ratio of 17.4, indicative of a premium market valuation, the company's revenue growth is robust, with a significant increase of 46.13% over the last twelve months as of Q2 2024. This growth is a testament to Natera's expanding operations and market reach.
InvestingPro Tips suggest that while analysts have revised earnings upwards for the upcoming period, they do not expect the company to be profitable this year. This aligns with the P/E ratio of -47.9, underscoring the market's anticipation of future growth rather than current earnings. Additionally, Natera's stock price has experienced a large uptick over the last six months, with a year-to-date price total return of 87.84%, highlighting investor confidence and the market's reaction to recent developments.
For those considering an investment in Natera, it is worth noting that the company operates with a moderate level of debt and has liquid assets that exceed short-term obligations, which could provide some financial stability in the face of its current unprofitability. Moreover, with 9 additional InvestingPro Tips available, investors can gain a more comprehensive understanding of Natera's financial and market position by visiting https://www.investing.com/pro/NTRA.
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