Canaccord Genuity Defends Natera (NTRA), Explains Why the NYTimes is Wrong

Canaccord Genuity analyst Kyle Mikson reiterated a Buy rating and $150.00 price target on Natera (NASDAQ: NTRA) after the New York Times published an article that included negative comments regarding the performance of non-invasive prenatal testing (NIPT), particularly for rare conditions such as microdeletions. The analyst believes this should not be a surprise however, and the impact on the share price will be short lived.

The analyst stated "we believe concerns around the performance of NIPT tests are overblown. We remind investors that the company announced the results from the SMART study in February 2021, which clearly noted that positive predictive value (PPV; essentially the percentage of positive test results that are correct) for 22q11.2 microdeletions was 24.3% (52.6% for an updated assay algorithm). In a Natera study from 2017, reported PPV values were also low (generally below 50%). Thus, we believe the NY Times article should not be a surprise to investors or clinicians (and perhaps more savvy patients). We continue to believe the company could receive meaningful reimbursement for microdeletions in the near term after the publication of the SMART study results. That said, we remain enthusiastic about Natera's long-term
growth drivers as well, including its oncology (Signatera) and organ health (Prospera) businesses. Overall, we recommend accumulating shares given today's weakness and the share pullback in recent months."

For an analyst ratings summary and ratings history on Natera click here. For more ratings news on Natera click here.

Shares of Natera closed at $90.96 yesterday.

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