Personalis: Buy Rating Amidst Challenges and Opportunities in MRD Growth

In a report released yesterday, Daniel Brennan from TD Cowen maintained a Buy rating on Personalis, with a price target of $8.00.

Daniel Brennan has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Personalis. Despite a disappointing second quarter with sales falling short of expectations and a reduction in the 2025 sales guidance, Brennan sees potential in the company’s growing MRD (Minimal Residual Disease) volumes and revenues. The demand for MRD from pharmaceutical companies remains strong, and the company has shown resilience with better-than-expected margins.
Furthermore, Brennan believes that the current weakness in the pharmaceutical sector is temporary, and the company’s confidence in MRD remains high. There is also significant interest from oncologists and pharmaceutical companies, with the possibility of having two ultra-sensitive tests approved by Medicare by the end of the year. Given these factors, along with a strong pharmaceutical pipeline and an attractive valuation, Brennan considers the stock a buy despite the recent setbacks.

Brennan covers the Healthcare sector, focusing on stocks such as Bruker, Illumina, and Thermo Fisher. According to TipRanks, Brennan has an average return of 9.8% and a 45.58% success rate on recommended stocks.