UPDATE: Raymond James Starts Invitae Corporation (NVTA) at Outperform
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Raymond James analyst Andrew Cooper initiates coverage on Invitae Corporation (NYSE: NVTA) with an Outperform rating and a price target of $37.00.
The analyst commented, "We initiate coverage on shares of Invitae with an Outperform rating as we believe the company's ability to drive growth across the portfolio and with new products is somewhat underappreciated in the market. We believe the company's platform approach to genetic testing in the broadest sense offers unique advantages (scale, development capabilities, etc.). Tailwinds in certain parts of the base business (like NIPT) and the move more deeply into somatic oncology serve as material accelerants to the overall business. On the latter, we believe both STRATAFIDE in therapy selection and PCM in MRD serve as compelling offerings with a differentiated approach (kitted IVD or LDT) in a combined $45B TAM. We expect coverage decisions and LDT and IVD launches to serve as catalysts for the stock over the next several years. Lastly, we view the valuation as accommodative in context of Invitae's 50-60% top-line growth target for the next few years. Though this includes M&A, we think the business can approach the low end of this range excluding additional deals. As such, the latter, which represents ~$6.50 per share in our DCF analysis, represents an inexpensive or free call option on top of the base business that is poised for growth."
Shares of Invitae Corporation closed at $31.22 yesterday.
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