Craig-Hallum Initiates Buy Rating on Adaptive Biotechnologies with $15 Target

Craig-Hallum has initiated coverage of Adaptive Biotechnologies (ADPT) with a Buy rating and set a price target of $15, reflecting strong confidence in the company's growth prospects. Adaptive is the dominant player in the $1.8 billion heme MRD market and is expected to achieve sustainable growth exceeding 20%, supported by improved reimbursement rates, increased adoption of MRD in clinical trials, and better integration with electronic medical records. The company is also transitioning to a new testing platform that is anticipated to enhance gross margins, alongside a strategic partnership with NeoGenomics. The consensus among seven brokerage firms rates Adaptive as an "Outperform" with an average price target of $11.60, implying a potential upside of approximately 14%. However, GuruFocus estimates suggest a fair value of $8.51, indicating a possible downside, highlighting some differing perspectives on valuation. Recent financial improvements include a 25% revenue growth year-over-year, a 17-point increase in sequencing gross margin, and a 38% reduction in cash burn, underscoring operational progress.