CareDx price target raised to $32 from $22 at Craig-Hallum

Craig-Hallum analyst Bill Bonello raised the firm’s price target on CareDx to $32 from $22 and keeps a Buy rating on the shares. The firm says it would buy CareDx following a substantial Q2 beat and raise. Revenue growth will be significantly better than Craig-Hallum had expected in the second half of this year, and the company has reached cash flow breakeven several quarters sooner than expected. While there may not be as much upside to estimates in future quarters, the firm thinks that the shares can command a significantly higher multiple given the outlook for sustainable mid-to-high teens revenue growth, near-term cash flow breakeven, and longer-term profit potential.