Update 12:33 pm: Adds Canaccord analyst defending Natera.
Hindenburg alleges that Natera’s revenue growth has been “driven by fraudulent sales and payment practices.” The short report shows the company remains “absolutely unprofitable.”
Natera (NTRA) did not immediately respond to a Seeking Alpha email request for comment.
Raymond James analyst Andrew Cooper, who held an investor event with the company earlier on Wednesday, said in a note that the company has “strongly denied” any relationship. any “unwarranted” relationship with MGML.
“Finally, we note that this report is almost entirely focused on women’s health, while a large part of the business, increasingly a smaller part of the investment thesis, with cancer becoming a bigger focus in the future,” Cooper wrote. “From our perspective, we don’t expect any of these dynamics to put that business at serious risk at this stage, at least beyond the potential damage to reputation.”
Canaccord also defended Natera, saying the stock’s weakness appears to have been overdone and reiterating its buy rating and $150 price target.
Canaccord analyst Kyle Mikson writes: “Short reports shouldn’t be taken lightly, but overall, the statements seem aggressive at this point.
Last month, Natera reported Q4 GAAP EPS of – $1.48, $0.18 short, revenue of $173 million beat $4.19 million.
Natera previously presented at Raymond James’ 43rd Annual Organization Investor Conference.