BTIG Raises Price Target#
BTIG has increased its price target for CareDx, Inc. (NASDAQ:CDNA) from $26.00 to $28.00 while maintaining a Buy rating. Currently, the stock trades at $21.91, reflecting a significant increase of approximately 53% over the past six months. According to analysis, the stock appears fairly valued based on its estimated fair value.
Acquisition of Naveris#
CareDx recently announced its acquisition of Naveris for up to $260 million, which includes $160 million in cash and $100 million tied to performance milestones. This acquisition values Naveris at 7.6 times its revenue from the past year, assuming the milestones are achieved. CareDx is in a strong financial position, holding more cash than debt, with a current ratio of 2.86, which indicates it can comfortably fund the cash portion of this deal.
Naveris's Market Position#
The acquisition is expected to close in the third quarter of 2026, pending standard closing conditions. Naveris generated around $34 million in revenue in 2025, marking a 75% increase from the previous year. CareDx anticipates that its business will grow by 30% to 40% annually over the next three years. Naveris specializes in testing for HPV-related cancers, and its tests are reimbursed at a rate of $1,800 each by Medicare.
Strong Financial Performance#
In addition to the acquisition news, CareDx reported strong financial results for the first quarter of 2026, significantly exceeding analysts' expectations. The company achieved earnings per share (EPS) of $0.34, a remarkable surprise compared to the projected EPS of -$0.06. CareDx's revenue reached $117.7 million, surpassing the anticipated $104.12 million by 13.04%. Despite these positive results, CareDx's stock saw a slight decline of 0.78% in aftermarket trading, which may be of interest to investors tracking the company's financial progress.