On Friday, Piper Sandler reaffirmed its positive stance on Natera, Inc. (NASDAQ:NTRA), maintaining an Overweight rating and a price target of $150.00. The firm's endorsement comes in anticipation of the new Galaxy study results, which are expected to be presented at the European Society for Medical Oncology (ESMO).
The study's findings are poised to shift the focus of oncological discussions, as Signatera, Natera's cancer test, moves beyond measuring sensitivity to providing insights on overall survival and disease-free survival. Signatera has been in the market for a considerable time, distinguishing itself as the only test currently able to offer such claims.
Piper Sandler emphasizes Signatera's significant lead in the market due to its first-mover advantages. These include being the pioneer in disease-free survival data, the first to present 36-month patient outcomes, and the inaugural provider of studies on therapy escalation and de-escalation with Altair and Vega. Moreover, Signatera has been the first to test alternative tissue types such as breast, bladder, and IO, with expectations for further advancements.
The firm's analyst highlighted the importance of these milestones, stating, "With the new Galaxy study set to be published at ESMO, Signatera is on a path to completely change the conversation with oncologists." The analyst also noted that Signatera's unique market position and the breadth of its data support the reiterated Overweight rating on Natera's shares.
InvestingPro Insights
Piper Sandler's endorsement of Natera, Inc. (NASDAQ:NTRA) is bolstered by several positive metrics and trends observed in the company's real-time data and InvestingPro Tips. Notably, Natera has seen significant returns over various time frames, including a high return over the last week, six months, and year. This performance is underlined by a 125.44% return over the last year and a 99.74% year-to-date price total return, reflecting strong investor confidence and market momentum.
While analysts have revised their earnings upwards for the upcoming period, they also note that the company is not expected to be profitable this year. This could be due to Natera's strategic investments in research and development, as they continue to innovate in the oncological space with their Signatera test. Despite the lack of profitability in the short term, Natera's liquid assets exceed their short-term obligations, indicating a stable financial position that supports ongoing operations and growth initiatives.
InvestingPro Tips also reveal that Natera operates with a moderate level of debt, which is a crucial factor for investors considering the company's financial health and risk profile. Additionally, the stock's volatility indicates that while there may be significant upside potential, investors should be prepared for possible price swings.
For readers looking to delve deeper into Natera's financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/NTRA, providing a comprehensive analysis of the company's performance and market position.
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