On Thursday, BTIG has increased the price target for Natera (NASDAQ:NTRA) Inc shares. (NASDAQ:NTRA), a leader in personalized genetic testing and diagnostics, to $100 from the previous target of $90, while maintaining a Buy rating.
The firm's positive outlook follows Natera's strong financial performance in the fourth quarter, where the company surpassed its pre-announced revenue results by approximately $11 million.
Natera reported a significant 43% year-over-year revenue growth for the fourth quarter and a 32% increase for the full year of 2023. A notable achievement for the company in this period was the increase in gross margins (GMs) to 51% in the fourth quarter, a 10 percentage point rise from the previous year and higher than the 46% that was estimated.
The company has also updated its financial outlook, now expecting to reach a breakeven quarter by the third quarter of 2024 or potentially earlier. This revised forecast is sooner than previously anticipated. Additionally, the average selling price (ASP) for Natera's Signatera test has surpassed the $1,000 mark per test.
In terms of future revenue, Natera has provided guidance for 2024 that is $50 to $80 million higher than the consensus estimates. This guidance is considered conservative as it does not account for potential positive factors such as new guideline inclusion, additional reimbursement traction, biomarker bills, among other drivers.
BTIG's revised price target and maintained Buy rating reflect confidence in Natera's continued growth and operational performance, as well as the company's ability to capitalize on multiple market opportunities that could further enhance its financial metrics.
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