CareDx (CDNA) Stock Forecast & Price Target

CareDx Inc has demonstrated robust financial growth, achieving a 21% increase in top-line revenue during Q3, driven by a 13% rise in volume and a 5% increase in average selling prices, alongside record cash collections in October. The company significantly expanded its sales force by approximately 50%, positioning itself for future growth in volumes, particularly with a notable 19% year-over-year increase in kidney surveillance volumes. Furthermore, CareDx reported positive GAAP net income and raised its financial guidance, indicating confidence in continued performance and contributing to a positive market reaction.

CareDx Inc. reported Q3'25 testing volumes of 50,000, which, while representing a 13% year-over-year increase, fell short of the anticipated 51,000, indicating a slowdown in growth despite a 20% increase in surveillance testing. The company's stock has faced downward pressure and currently trades at 1.4 times the projected 2026 revenue of $415 million, significantly below the historical range of 3-7 times and also lagging behind peers in the diagnostics space, which trade at 9-10 times revenue. Furthermore, the company faces challenges in commercializing new diagnostic solutions crucial for its growth strategy, coupled with instability due to frequent management changes over the past three years, contributing to an overall negative outlook.