On Thursday, Personalis Inc . (NASDAQ:PSNL) received a positive outlook from BTIG, with the firm increasing the stock's price target to $5.50, up from the previous $4.00, while retaining a Buy rating. The adjustment follows a strong second-quarter performance by Personalis, which saw its shares rise approximately 20%.
The company, known for its advanced genomic sequencing and analytics, has reportedly made significant progress in reducing business risks over the past year. This includes achieving its first 30%+ gross margin quarter since 2021 and recording the highest pharma services revenue in its history. The growth was attributed to the rising interest in Personalis' NeXT Personal MRD test among pharmaceutical companies and success in its personalized cancer vaccine business.
Personalis has also seen robust quarter-over-quarter growth in its new oncology clinical diagnostic testing service. The company has been receiving orders for its NeXT Personal MRD test, which has been gaining traction thanks to its partnership with Tempus, a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare.
In addition to these developments, Personalis expressed confidence in the expansion of its personalized cancer vaccine business. This segment has been bolstered by a collaboration with Moderna (NASDAQ:MRNA) on a personalized cancer vaccine, although the business is not solely reliant on this partnership.
Despite the recent uptick in Personalis' stock price, BTIG highlighted that the shares are currently trading at just 1.2 times their 2025 revenue estimate of $83 million. This valuation is below the 2.0 times average of its peers and significantly under the historical average multiples ranging from approximately 3 to 7 times.
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