CareDx hits over 5-yr low on withdrawing annual revenue outlook

CareDx

11/05/2023 15:07

(Updates)
    ** Shares of precision medicine solutions firm CareDx Inc
 CDNA.O  fall as much as 27.6% to $6.22 in early trade - hitting
lowest levels since February 2018
    ** Co withdraws its 2023 revenue outlook, citing
uncertainties around the Centers for Medicare and Medicaid
Services' (CMS) policy on transplant testing 
    ** CDNA reported Q1 revenue of $77.26 mln, below analysts'
estimates of $80.7 mln - Refinitiv
    ** BTIG analysts find co's withdrawal of outlook "draconian"
and says it is "unclear" how the company's low testing volumes
will trend in the coming quarters
    ** BTIG also downgrades CDNA to "neutral" from "buy" 
    ** Brokerage Stephens had said CMS' new billing policy
significantly restricts the use/frequency of transplant testing,
directly impacting revenue 
    ** Two of seven brokerages rate the stock "buy" or higher,
and five rate "hold"; their median PT is $12
    ** Up to last close, stock down ~25% YTD

 (Reporting by Mariam Sunny and Bhanvi Satija in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))