Natera Shares Down 12%; Cowen Reiterated Outperform Following Meetings With Management

Natera Inc (NASDAQ: NTRA) reported its first quarter financial results on Tuesday. The net loss reached ($0.17) per share and revenue came in at $61.9 million. The stock fell 12.11 percent on Wednesday.

Cowen recently hosted a few investor meetings with Natera’s Senior Management team. Following the encounters, the firm reiterated an Outperform rating and $17 price target on the stock.

The report pointed out the company’s solid job during the meets:

• Near-term ASP dynamics
• The average risk NIPT revenue growth outlook
• The path to a material amelioration in COGS
• Its liquid biopsy product pipeline

The Outperform rating was supported by estimates that the NIPT market currently offers an opportunity of roughly $2 billion – with the potential to expand by more than five-fold “as measured by volumes if NIPT becomes well adopted in the average risk segment.” Importantly, “Natera is well-positioned to capitalize on this opportunity.”

The company’s long-term strategy is also alluring, the note continued, given that its core technology could position it well in a potentially massive market for liquid biopsy.

Taking into account the large and expanding NIPT market and Natera’s position as a key player in the segment, analysts at Cowen believe the company is poised to grow revenue at a 5-year CAGR of 18 percent.