BillionToOne wins upbeat coverage as analysts flag growth in prenatal, cancer tests

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Dec 1 (Reuters) – Wall Street analysts, who acted as lead underwriters for BillionToOne’s Nasdaq debut last month, began coverage of the diagnostics firm on Monday with broadly upbeat views, pointing to its advanced technology and growth prospects in prenatal and cancer testing.

BillionToOne’s shares were at $130.18 as of Friday, up about 117% from their $60 initial public offering price, valuing the Menlo Park-based firm at $5.91 billion. The company raised $273 million in an upsized offering last month, selling 4.55 million shares above its marketed range of $49 to $55 apiece.

Analysts highlighted the company’s first-mover advantage in prenatal screening and a robust oncology pipeline as key drivers of long-term growth.

Piper Sandler analysts assigned an “overweight” rating with a $150 price target, describing BillionToOne’s oncology liquid biopsy products as “game-changing” for therapy selection and monitoring.

J.P. Morgan echoed the optimism, saying the company’s pipeline, including a tissue-free minimal residual disease test expected in 2026, is a key long-term growth driver.

However, Jefferies, which has a “hold” rating on the stock, said the shares reflect a lot of future growth. It noted that while BillionToOne’s technology is strong, success in cancer testing will take time.

J.P. Morgan, Piper Sandler, Jefferies and William Blair acted as lead underwriters on the offering.

BillionToOne joins a wave of healthcare firms tapping public markets this year, including Caris Life Sciences, whose shares traded 21.57% above the issue price as of Friday.

Founded in 2016, BillionToOne develops non-invasive prenatal and oncology blood tests using proprietary single-molecule next-generation sequencing technology.

The company’s revenue rose nearly 82% during the six months ended June 30 from a year earlier, with gross profit more than doubling over the same period.

(Reporting by Rashika Singh in Bengaluru; Editing by Shreya Biswas)