Craig-Hallum would be a buyer of CareDx on shares selloff

Craig-Hallum analyst Bill Bonello notes CareDx shares were down 16% on Tuesday. The firm thinks the selloff is attributable to five factors, namely the magnitude of the Q3 revenue beat, volume growth being slightly below projections, the fact that management did not reiterate full-year guidance in either the Q3 preliminary results release or during the Investor Day presentation, limited discussion around the outlook for resumption of surveillance testing, and the fact that management did not take Q&A during the webcast portion of the Investor Day event. Craig-Hallum would be buying the shares on this weakness. In the near-term, numbers need to come up. Longer term, CareDx has the elements to be a great stock, the firm adds. Craig-Hallum has a Buy rating on the shares with a price target of $40.