Accelerating Clinical Adoption and Expanding Medicare Reimbursement Support Buy Rating and Favorable Risk-Reward Profile

Personalis, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Matson from Needham maintained a Buy rating on the stock and has a $10.00 price target.

Michael Matson has given his Buy rating due to a combination of factors reflecting both operational momentum and a strengthened financial position. He notes that fourth-quarter 2025 revenue guidance is broadly consistent with market expectations while showing year-over-year growth, and that biopharma and other customer revenues remain the primary contributors. At the same time, he highlights a sharp increase in clinical testing activity, with quarterly test volumes rising more than 40% sequentially and full-year tests growing nearly five-fold, signaling rapid adoption of the company’s offerings.

Matson also emphasizes the strategic importance of recent Medicare coverage for NeXT Personal in breast cancer across all major subtypes, with clearly defined reimbursement rates for both initial and follow-up tests, which should support revenue expansion as utilization builds. He expects the company to use its enhanced cash balance—bolstered by over $100 million in proceeds from an at-the-market equity program—to step up commercial investments, particularly sales force growth, as it advances the breast cancer launch and pursues additional Medicare reimbursement in immunotherapy monitoring and lung cancer. In his view, the combination of accelerating clinical demand, expanding reimbursement, and a reinforced balance sheet underpins a favorable risk-reward profile that justifies a Buy rating.