Navigating 5 Analyst Ratings For CareDx

Throughout the last three months, 5 analysts have evaluated CareDx CDNA, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $15.4, along with a high estimate of $18.00 and a low estimate of $14.00. Witnessing a positive shift, the current average has risen by 24.9% from the previous average price target of $12.33.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive CareDx is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CareDx. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CareDx compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of CareDx's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into CareDx's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Delving into CareDx's Background

CareDx Inc operates as a precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. It offers testing services, products, and digital solutions along with the pre-and post-transplant patient journey and is a provider of genomics-based information for transplant patients. The Company's commercially available testing services consist of AlloSure Kidney, AlloMap Heart, AlloSure Heart, a dd-cfDNA solution for heart transplant patients, and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. Geographically the company generates the majority of its revenue from the United States. The company generates major revenue from the Testing services.

Key Indicators: CareDx's Financial Health

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, CareDx faced challenges, resulting in a decline of approximately -20.41% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: CareDx's net margin is impressive, surpassing industry averages. With a net margin of -180.11%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): CareDx's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -36.03%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): CareDx's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -24.4%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.13, CareDx adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.