Citron Explains Long Position on Invitae ($NVTA) – The most exciting company you have not heard of.
For Immediate Release – July 31st, 2019
Citron’s $100 price target validated and explained
As noted in Citron Capital’s 1H’19 investor letter, the fund has been long shares of Invitae ($NVTA) and will continue to stay long until the stock hits at least $65 as we believe it is on its way to $100.
The “goings on” of this week has made us compelled to explain our investment thesis to the public.
Citron’s conviction on Invitae was strengthened by this week’s purchase of Genomic Health ($GHDX) by Exact Sciences ($EXAS) in a $2.8 billion deal. The stock of $EXAS immediately went lower only to recover in a matter of hours. Wall St has spoken – the consensus is that $EXAS is on the right path with the purchase of this legacy genetic testing company.
In almost 20 years of publishing at Citron Research, one of the biggest mistakes was betting against $EXAS. While Citron was making arguments about lack of profitability and newer technologies that might displace $EXAS, the company continued to grow test volumes and the stock surged from $30 to $115 in two years.
The key to the Exact Sciences success was their initiative to take clinical grade colorectal cancer screening direct to consumer. This DTC model made volumes explode and stock price followed.