Rothschild Redburn initiates Natera stock with buy on MRD leadership

Rothschild Redburn initiated coverage on Natera Inc. (NTRA) with a Buy rating and a price target of $385.00, indicating a 17% upside potential from the current $328 price. Analysts maintain a Strong Buy consensus on the stock, which has surged 96% in the past year. Natera leads in minimal residual disease testing through its Signatera tumor-informed test and offers Latitude, a tumor-naive MRD test for colorectal cancer.

The company is also developing a multi-cancer early detection screening test and provides prenatal testing and hereditary screening services.

Rothschild Redburn forecasts a 22% compound annual revenue growth for Natera from 2026 to 2029. The company has already shown strong momentum with 38% revenue growth in the last twelve months, reaching $2.71 billion and a market capitalization of $47.3 billion. Rothschild Redburn expects profitability to improve gradually, with 25% profitability projected by 2030 backed by ongoing data generation and additional reimbursement approvals.

InvestingPro analysis suggests the stock may be overvalued compared to its Fair Value estimate, but 11 analysts have recently revised their earnings upward. Investors can access the Pro Research Report for a detailed look at Natera's valuation and growth. Recently, Natera reported revenue exceeding Wall Street expectations, with $753 million reported, surpassing the forecast of $661.26 million.

This growth was driven by performance across its main businesses, stronger margins, record test volume, and regulatory wins. These financial indicators underscore the company's robust financial health and strategic progress.