Craig-Hallum downgrades CareDx to Hold on less compelling risk-reward

As previously reported, Craig-Hallum downgraded CareDx (CDNA) to Hold from Buy with a $26 price target With the shares having fully recovered to where they were before MolDX issued its restrictive draft LCD back in July, the firm believes the risk-reward appears less compelling. At this point, 2026 revenue and longer-term growth will be highly dependent on the shape of the final LCD. Craig-Hallum can conceive of a scenario where next year’s numbers are too high and longer-term growth opportunities are less robust than it once believed. In the meantime, the firm won’t be shocked if the Q4 2025 volume falls below the midpoint of management’s guidance.