Natera Inc (NASDAQ:NTRA) analyst Kyle Mikson of Canaccord Genuity Capital reiterated a Buy rating Wednesday on the genetic testing company following a Hindenburg Research short report released the same morning criticizing Natera on "multiple fronts."
“Hindenburg's report questions NTRA's potential use of a third party (My Genome My Life, or MGML) for prior authorization facilitation, microdeletion testing, 'deceptive' billing practices and the regulatory/legal attention the company has received in recent years. Overall, we think many of the 'points' made by the author are not entirely new information,” the analyst wrote.
Following the release of the Hindenburg report, shares of Natera slumped.
Mikson leads the note with several reasons why Cancacoord believes the Natera selloff is overdone:
- Canaccord believes that Natera can be viewed as an attractive short seller candidate due to its high level performance over the last two years.
- Canaccord believes Hindenburg's negative claims are unfounded.
- Canaccord believes the extent of the billing violations mentioned in the Hindenburg are generally "old news" with respect to Natera and the NIPT industry.
