Analyst Daniel Brennan of TD Cowen maintained a Buy rating on Adaptive Biotechnologies (ADPT – Research Report), boosting the price target to $13.00.
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Daniel Brennan’s rating is based on several positive developments at Adaptive Biotechnologies. The company reported a significant revenue increase of 36% in the first quarter, excluding milestones, which exceeded consensus expectations by 23%. This growth was driven by strong performance in their MRD volumes and average selling prices, alongside a notable expansion in gross margins year-over-year.
Furthermore, the company raised its guidance, indicating potential for further upside in areas such as ClonoSEQ volume, pricing, pharmaceutical partnerships, and cost of goods sold. The company’s strategic initiatives, including the expansion into new indications and improved operational efficiencies, have contributed to a stronger than anticipated financial performance. These factors, combined with a disciplined approach to operating expenses, suggest a promising outlook for margin improvement by 2025, supporting Brennan’s Buy rating.