In a report released today, Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Personalis (PSNL – Research Report), with a price target of $8.00.
Swayampakula Ramakanth has given his Buy rating due to a combination of factors that indicate strong future growth potential for Personalis. The anticipated revenue growth from the NeXT Personal MRD test kit starting in 2026 is a significant factor, driven by a notable increase in the number of tests delivered and positive feedback from physicians. The high retention rate among physicians and the strong demand from biopharma customers, as evidenced by a 50% growth in MRD testing revenue in 2024, further support this outlook.
Additionally, Personalis’ collaborations with academic institutions and the submission of manuscripts on the use of NeXT Personal for various cancer indications are expected to bolster regulatory submissions for reimbursement approval. With management anticipating reimbursement approval for at least two indications in 2025, there is an expectation of a rapid increase in MRD revenue. Despite a potential softening in biopharma revenue in 2025 due to the completion of a major study, the long-term potential of the ImmunoID NeXT platform remains strong, supported by a multi-year contract extension with Moderna for ongoing clinical studies.
Based on the recent corporate insider activity of 21 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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