Yuko Oku, an analyst from Morgan Stanley, maintained the Hold rating on Personalis (PSNL – Research Report). The associated price target is $5.00.
Yuko Oku has given his Hold rating due to a combination of factors impacting Personalis’s financial performance and future outlook. The company’s fourth-quarter results were in line with preliminary expectations, primarily driven by strong Enterprise sales, although overall revenue saw a year-over-year decline due to reduced volumes from Natera and the VA MVP. Despite this, the company showed a favorable gross margin improvement due to an increased biopharma volume, although non-reimbursed costs had a notable impact.
Looking ahead, Personalis’s 2025 guidance is slightly ahead of Morgan Stanley’s expectations, with anticipated revenue growth driven by increased investments in clinical usage. However, the guidance range reflects potential variability, and the company is expected to face a gross margin step-down due to these investments. Additionally, while Personalis has completed its Medicare coverage submission for breast cancer, the anticipated growth in NeXT Personal volumes and potential reimbursement approvals are factors that contribute to the Hold rating, as they present both opportunities and uncertainties.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PSNL in relation to earlier this year.
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