CareDx (CDNA) has received a new Hold rating, initiated by William Blair analyst, Andrew Brackmann.
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Andrew Brackmann has given his Hold rating due to a combination of factors impacting CareDx’s current and future performance. The company, which provides comprehensive solutions for transplant centers, faces uncertainties primarily due to a proposed local coverage decision affecting its testing services segment, which constitutes a significant portion of its revenue. Although this proposal is not as severe as initially anticipated, it introduces potential revenue challenges that obscure the short-term outlook.
Despite these challenges, Brackmann acknowledges that CareDx’s stock appears undervalued when compared to its peers, trading at a significant discount. However, the lack of clarity on the intermediate-term financial modeling due to the reimbursement issues justifies a cautious approach. The company’s strong position in the transplant ecosystem and potential for long-term growth are recognized, but the immediate uncertainties warrant a Hold rating at this time.
Brackmann covers the Healthcare sector, focusing on stocks such as Exact Sciences, Becton Dickinson, and Hologic. According to TipRanks, Brackmann has an average return of 10.7% and a 60.00% success rate on recommended stocks.
In another report released on August 14, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $12.50 price target.