Renowned investor Cathie Wood has been a strong advocate of genomics having the potential to be one of the biggest disruptive trends in the coming months after electric vehicles (EVs). As the founder and manager of the…
world’s largest actively traded ETF company, Ark Investment Services, Wood entered the limelight by generating big gains from her investments in Tesla, Inc. (TSLA).
Her genomics-focused Ark Genomic Revolution ETF (ARKG) has a substantial stake in Adaptive Biotechnologies Corporation (ADPT), CareDx, Inc (CDNA), and Berkeley Lights, Inc. (BLI). As of September 3, ARKG held 4,743,667 shares of ADPT, representing a 2.1% weighting in the portfolio. CDNA is one of ARKG’s top 10 holdings, representing 3.1% of the portfolio, while BLI represents 1.5%.
Given the industry’s solid growth prospects, Wall Street analysts are bullish on Cathie Wood’s top holdings—ADPT, CDNA, and BLI.
Adaptive Biotechnologies Corporation (ADPT)
ADPT is a biotechnology company focused on using the biology of the adaptive immune system to develop the diagnosis and treatment of disease. The Seattle, Wash., company’s immune medicine platform generates clinical immunomics data to decode the adaptive immune system.
On August 4, the company announced the appointment of Nitin Sood to the newly created position of chief commercial officer. Sood has more than 15 years of proven commercial experience in leading life sciences and diagnostics companies, most recently at Guardant Health. Sood’s experience and expertise should aid ADPT’s commercial expansion.
ADPT’s total revenue increased 83.5% year-over-year to $38.51 million in its fiscal second quarter, ended June 30. Its sequencing revenue stood at $18.56 million, up 132.4% from the same period last year. In addition, its development revenue rose 53.4% from the prior-year quarter to $19.95 million over this period.
A $37.07 million consensus revenue estimate for the fiscal third quarter, ending September 2021, indicates a 57.2% increase year-over-year. Also, the Street expects the company’s revenue to rise 56.3% from the prior year to $153.82 million in the current year. Furthermore, the company’s EPS is expected to grow 4.3% per annum over the next five years. ADPT has a notable earnings surprise history as well; it beat the consensus EPS estimates in three out of the trailing four quarters.
Over the past five days, the stock gained 12.6% in price to close yesterday’s trading session at $39.51. ADPT gained 9.8% over the past month.
Of the three Wall Street analysts that rated ADPT, two rated it Buy, while one rated it Hold. The $62.33 median price target indicates a potential 57.8% upside from its last closing price. The 12-month price targets range from a low of $52.00 to a high of $75.00.
CareDx, Inc (CDNA)
CDNA is a molecular diagnostics company. It is focused on the discovery, development, and commercialization of clinically differentiated diagnostic surveillance solutions for transplant patients. CDNA is based in Brisbane, Calif.
On June 8, CDNA announced the acquisition of…
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