Natera, a biotech company with strong financials and growth projections, receives bullish ratings.

From Yahoo Finance: 2025-06-22 08:00:00

Cathie Wood, the CEO of Ark Invest, has seen her flagship fund, Ark Innovation ETF (ARKK), deliver a 52.9% return in the past year, showcasing her high-conviction approach to disruptive innovation. Wood focuses on industries like genomics, autonomous technology, and blockchain, with Natera (NTRA) standing out as a key player.

Natera, a biotech firm based in Austin, Texas, is valued at $23.3 billion and specializes in cell-free DNA and genetic testing. The company offers innovative products like Panorama for prenatal screening and Signatera for cancer surveillance, leading to a 16.9% stock climb over the past three months.

Natera’s first-quarter results exceeded expectations, with total revenues reaching $501.8 million, a 36.5% increase year-over-year. The company processed 855,100 tests during the quarter, with significant growth in women’s health volumes and record-breaking performance from Signatera.

The company’s gross margins stood at 63.1%, with a net loss reduction to $66.9 million. Natera’s strong financial position is reflected in its cash reserves of $973.8 million. CEO Steve Chapman is optimistic about Signatera’s revenue potential, projecting over $5 billion annually.

Natera raised its full-year revenue guidance to between $1.94 billion and $2.02 billion, indicating a 26% growth. Analysts expect losses per share to widen in Q2 2025 but forecast profitability in FY26. The stock has a “Strong Buy” rating from analysts, with a potential upside of 17.6% to $200.42 average price target.

Analysts are bullish on Natera, with a majority giving it a “Strong Buy” rating and a high price target of $251, reflecting confidence in future earnings. As the company continues to innovate in genetic testing and precision medicine, investors are watching Natera’s growth trajectory closely.

Read more: If You Can Only Buy 1 Cathie Wood Stock in 2025, It Should Be This