In a report released today, Daniel Brennan from TD Cowen maintained a Buy rating on Adaptive Biotechnologies, with a price target of $22.00.
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Daniel Brennan has given his Buy rating due to a combination of factors including Adaptive Biotechnologies’ strong performance in the third quarter, characterized by significant growth in MRD revenues and an expansion in gross margins. The company demonstrated a 52% year-over-year increase in MRD sales, surpassing expectations by 15%, with clinical MRD sales growing at an impressive 83%. This growth was driven by both increased volumes and pricing, indicating a solid market position.
Moreover, Adaptive Biotechnologies has shown promising profitability improvements, with the MRD EBITDA margin reaching 13%. The company’s strategic positioning in a large and underpenetrated market, along with its dominance as a leading MRD player, further supports the positive outlook. Brennan also highlights the potential for continued growth and margin expansion, supported by various factors such as guidelines, partnerships, and operational efficiencies, justifying the increased price target of $22.
Brennan covers the Healthcare sector, focusing on stocks such as Exact Sciences, Natera, and Guardant Health. According to TipRanks, Brennan has an average return of 21.9% and a 57.81% success rate on recommended stocks.