BTIG analyst Mark Massaro laid out a focused slate of seven stocks in the specialty laboratories and diagnostics segment as companies prepare to report second-quarter results. Massaro noted the group has seen rising valuations recently, with several large-cap names trading above their smaller peers on forward revenue multiples.
Sector-wide context - Natera recently surpassed $40 billion in market capitalization, establishing the largest valuation recorded for a lab to date and trading at about 11 times consensus revenue for 2027. Guardant Health sits roughly one valuation point above Natera and commands a premium to smaller and mid-cap competitors, which trade around 8 times 2027 revenues, according to BTIG. As earnings season approaches, the analyst expects some companies to deliver stronger-than-forecast results while others face more subdued expectations.
Company-by-company expectations and BTIG positions
- Guardant Health (NASDAQ:GH) - BTIG retains a Buy rating and sets a $190 price target. Guardant has had a strong start to the year, with shares up 49% year-to-date, and currently trades at 12 times Street 2027 revenue estimates. BTIG anticipates investors will look for a roughly 4% revenue beat in the second quarter as well as a corresponding increase to revenue guidance. Test volume expectations include a sequential increase of 10,000 Shield screening tests to 54,000 total for the quarter - which would imply 238% year-over-year growth and 23% quarter-over-quarter growth.
- Natera (NASDAQ:NTRA) - BTIG raised its price target to $290 from $275 while maintaining a Buy rating. The firm expects market participants to seek a 6% top-line beat in the second quarter and a proportionate lift to guidance. Natera is projected to add 25,000 Signatera tests sequentially to reach 274,000 tests, representing 51% growth year-over-year. BTIG also flagged potential upside from new Centers for Medicare & Medicaid Services wins or Medicare pan-cancer coverage, additional guideline endorsements, stronger-than-expected MRD performance on a quarter-over-quarter basis, and benefits from products referenced as Latitude, Zenith, or Foresight.
- BillionToOne (NASDAQ:BLLN) - BTIG raised the price target to $142 from $130 and continues to rate the stock a Buy. Positioned as the firm’s small-cap top pick for the second half of 2026, BillionToOne is expected to deliver roughly a 4% revenue beat and a corresponding guidance raise. The company’s catalyst roadmap that investors will watch includes potential CMS coverage for its NorthStar Response product, the planned MRD launch, and additions to its salesforce.
- GeneDx (NASDAQ:WGS) - BTIG keeps a Buy rating and $90 price objective. The stock experienced a roughly 50% decline in the first quarter, after which the company installed a new chairman, president, and financial executive. GeneDx has secured new Carallon coverage for testing and obtained MediCal pricing, developments that have coincided with a marked rebound in the share price. Recent physician checks were described as encouraging. Trading at about 3 times consensus 2027 revenues, BTIG considers the valuation attractive despite investor concerns around growing competition and corporate governance.
- Adaptive Biotechnologies (NASDAQ:ADPT) - BTIG boosted its price target to $24 from $22 and maintained a Buy rating. Investor sentiment improved when the company announced plans to split its two businesses by year-end 2026, a move BTIG believes could unlock additional value. The firm expects another strong quarter with the possibility of beating estimates and raising guidance.
- Tempus AI (NASDAQ:TEM) - BTIG keeps a Buy rating with an $80 price target and looks for a modest 2% top-line beat in the quarter alongside a reaffirmation of 2026 guidance. BTIG noted some surprise at an 8% share price pullback after Tempus disclosed its $1.5 billion acquisition of Personalis. The analyst sees strategic merit in the deal, believing Personalis could help Tempus expand its footprint in the sizeable $20 billion to $30 billion-plus minimal residual disease market across clinical and pharmaceutical applications.
- Caris Life Sciences (NASDAQ:CAI) - BTIG maintains a Buy rating with a $32 target and expects investors to look for a small, roughly 1% top-line beat. Positive updates on the timing of the company’s MRD business or improving trends in its tissue or liquid testing franchises could help lift sentiment from current levels.
Overall, BTIG’s coverage emphasizes expected beats and incremental guidance raises for several names, while pointing to valuation dispersion that leaves some names trading at materially lower forward revenue multiples than larger peers. The firm also highlights specific operational and commercial catalysts - such as CMS coverage decisions, guideline wins, MRD volume acceleration, and corporate actions like business splits or acquisitions - that could materially affect near-term investor perceptions.