Natera's (NTRA) Signatera Genome, the new ultra sensitive version of its molecular residual disease test, could emerge as the dominant clinical offering within a few years, RBC Capital Markets said in a note.
The company plans to run ultra Signatera Genome alongside Signatera Classic in prospective trials slated for readout in 2027, which will yield a prospective data advantage that the company believes competitors will struggle to replicate, RBC said on Thursday.
RBC further said that pharma is a meaningful additional growth leg, noting that the publication of IMvigor data last Fall saw pharma engagement that materially exceeded Natera's own expectations, thus, driving interest in using Signatera in clinical trials.
Additionally, another opportunity lies in monetizing Natera's longitudinal Signatera datasets, with artificial intelligence unlocking actionable insights from this data, RBC said.
RBC raised its price target on the company's stock to $460 from $350 and maintained its outperform rating.
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