Mizuho Securities Cuts Price Target on CareDx (CDNA) to $8 Following Allenex Acquisition

Mizuho Securities maintained a Buy rating on CareDx, Inc (NASDAQ: CDNA), and cut the price target to $8.00 (from $12.00) mainly due to share dilution from the Allenex acquisition. The deal transforms CDNA into a comprehensive transplant test provider, adding pre-transplant solutions, and increases the company's revenue base by about 50%.

Analyst Eric Criscuolo commented, "We're lowering our PT to $8 due mainly to share dilution from the Allenex acquisition. CMS reimbursement is an issue again, but we think there's a good chance it gets a positive revision based on recent history. Initial data from the DART study was positive and shows the potential for AlloSure in the kidney market. Despite the PT change and reimbursement risk we think CDNA remains a compelling micro cap story and reiterate our Buy rating."

For an analyst ratings summary and ratings history on CareDx, Inc click here. For more ratings news on CareDx, Inc click here.

Shares of CareDx, Inc closed at $4.70 yesterday.

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