Goldman Sachs Starts Adeptus Biotechnologies Corp. (ADPT) at Buy
Goldman Sachs analyst Evie Koslosky initiates coverage on Adeptus Biotechnologies Corp. (NASDAQ: ADPT) with a Buy rating and a price target of $35.00.
The analyst comments "We are initiating coverage on Adaptive Biotechnologies (ADPT) with a Buy rating and $35 price target, representing 23% upside, as we believe the company has established itself as the leader in next-generation sequencing (NGS) minimal residual disease (MRD) testing, within the Heme Oncology market, with significant room for further market penetration and TAM expansion. ADPT generates the majority of its revenue through clonoSEQ, an FDA-authorized assay used to measure MRD in hematological malignancies through blood and bone marrow samples, which boasts industry leading sensitivity. In our view, the company has significant room for additional market penetration, as we estimate it has only penetrated ~13% of the potential patient population, leaving significant room for further growth as it benefits from both tactical strategies including EMR integration and driving blood-based testing in community settings, but also the shift towards using MRD testing to guide treatment decisions. Additionally, the company has several future catalysts in the path towards increasingly using clonoSEQ within not only treatment response monitoring, but also recurrence monitoring. We view its medicare reimbursement/pricing as durable, with several levers for improvement over time, which should support future margin growth and cash flow."
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Shares of Adeptus Biotechnologies Corp. closed at $28.51 yesterday.