In a report released yesterday, Daniel Brennan from TD Cowen reiterated a Buy rating on Adaptive Biotechnologies, with a price target of $15.00.
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Daniel Brennan’s rating is based on Adaptive Biotechnologies’ impressive financial performance and strategic initiatives. The company reported a 36% increase in second-quarter revenues, surpassing consensus expectations by 19%. This growth was primarily driven by the strong performance of their MRD (Minimal Residual Disease) volumes, which grew by 42% year-over-year, highlighting the company’s robust business momentum.
Furthermore, Adaptive Biotechnologies has shown significant improvements in gross margins and has turned EBITDA positive in the MRD segment. The integration of ClonoSEQ into electronic medical records and the shift from bone marrow to blood testing are expected to support continued volume growth. These factors, along with the company’s successful renegotiation of payer contracts and the expansion of average selling prices, contribute to Brennan’s optimistic outlook and the increased price target from $13 to $15.