CareDx Inc: BTIG raises target price to $45 from $28

BTIG has raised its price target for CareDx Inc (NASDAQ:CDNA) to $45 from $28, while maintaining a Buy rating, following favorable coverage determination. The stock is currently trading at $39.85, up 58% year-to-date and near its 52-week high of $40.38. The updated price target reflects the firm’s expectation of upside to consensus revenue estimates for 2026, 2027, and 2028, though BTIG has not yet revised its financial model.

The coverage determination, issued by Palmetto GBA, confirms Medicare coverage for CareDx’s transplant surveillance testing across kidney, heart, and lung transplants, with volume thresholds exceeding current levels. This decision supports the continued availability of CareDx’s HeartCare suite, which combines AlloMap and AlloSure, and reinforces the company’s position in the transplant diagnostics market.

CareDx has not updated its 2026 guidance following the coverage decision, likely due to proximity of second-quarter earnings release on July 30. The company has also completed the acquisition of Naveris and the sale of its Lab Products business to Eurobio Scientific for $171.2 million in cash. These strategic moves aim to enhance CareDx’s product portfolio and focus on core diagnostic offerings.