Stephens analyst Mason Carrico downgraded CareDx to Equal Weight from Overweight with a price target of $9, down from $19, following the recent release of a new CMS billing policy that "significantly restricts" the use and frequency of transplant testing. The firm sees an immediate negative impact to revenue by eliminating HeartCare reimbursement and limiting use of AlloSure Kidney, adding that policy restrictions introduce considerable uncertainty around key revenue drivers and likely significantly shrinks the kidney transplant total addressable market. The new policy will likely be overhang on the stock and even though shares "reflect a bearish scenario," Stephens doesn’t expect a clear-cut resolution "anytime soon," the firm added.
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on CDNA:
- CareDx says won’t participate in Raymond James conference on scheduling conflict
- CareDx price target lowered to $19 from $25 at BTIG
- Street Wrap: Today’s Top 15 Upgrades, Downgrades, Initiations
- CareDx downgraded to Hold at Craig-Hallum after Medicare ‘worst case scenario’
- CareDx downgraded to Hold from Buy at Craig-Hallum