CareDx: Undervalued Leader with Strong Growth Potential and Strategic Initiatives

Mark Massaro, an analyst from BTIG, reiterated the Buy rating on CareDx (CDNA – Research Report). The associated price target was lowered to $30.00.

Mark Massaro has given his Buy rating due to a combination of factors including CareDx’s solid business fundamentals and its current undervaluation. Despite a 9% drop in stock price following an in-line Q1 performance, Massaro views this as an overreaction and believes the fundamentals are improving, with a notable 12% year-over-year growth in volumes. The company is seen as undervalued, trading at a significant discount compared to its peers, which presents an attractive entry point for investors.
Massaro highlights CareDx’s leadership position, strong gross margins, and double-digit growth potential as key reasons for the Buy rating. The company has reiterated its revenue guidance for 2025, with expectations of mid-teens volume growth and continued market expansion. Additionally, improvements in billing and collections, along with strategic initiatives like the IOTA program, are expected to drive further growth in the second half of the year.

In another report released today, Craig-Hallum also maintained a Buy rating on the stock with a $40.00 price target.