In a report released yesterday, Mark Massaro from BTIG maintained a Buy rating on Adaptive Biotechnologies, with a price target of $14.00.
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Mark Massaro has given his Buy rating due to a combination of factors that highlight Adaptive Biotechnologies’ promising growth potential. The termination of the collaboration with Genentech provides Adaptive Biotechnologies with increased flexibility to engage with multiple biopharmaceutical companies, enhancing its opportunities for data-type licensing deals. This strategic move allows the company to focus on its core MRD hematology testing business while maintaining a low-cost call option in its Immune Medicine segment.
Furthermore, Adaptive Biotechnologies’ core MRD business is experiencing robust growth, as evidenced by a strong Q2 performance and a significant increase in its MRD pharma backlog. The company’s clonoSEQ product is gaining traction, with its use as a primary or secondary endpoint in numerous clinical trials, and the recent price increase from CMS is expected to further boost revenues. These factors, combined with the company’s commitment to reducing cash burn and expanding positive EBITDA, support Massaro’s optimistic outlook and Buy rating for the stock.
According to TipRanks, Massaro is an analyst with an average return of -9.0% and a 31.13% success rate. Massaro covers the Healthcare sector, focusing on stocks such as Personalis, Adaptive Biotechnologies, and Idexx Laboratories.