The investment bank said it is encouraged by the company's strong pipeline and position among its competitors but sees further upside for its stock.
The pharma company plans to use the Signatera assay to determine whether it can identify patients who will respond to immunotherapy.
The Signatera research-use-only assay monitors cancer treatment and assesses minimal residual disease, and is customized for individual patients.
The firm is working on harnessing its ability to assess fetal fraction to develop new methods to predict fetal aneuploidy risks and pregnancy complications.
The firm recognized $63.1 million in revenues and processed 162,807 tests in the second quarter 2018.
Natera led the Index for the second month in a row after it announced that it intended to raise $75 million in a public stock offering.
The firm said it will offer 4.5 million shares of its common stock at $20 per share. It expects to close its follow-on public offering on July 16.
The molecular diagnostics company previously raised $180 million in its 2015 initial public offering.
Natera led the Index with a 61 percent increase in stock price, driven by the firm's announcement that it was entering the transplantation market.
The company outlined its plans to launch a kidney transplant rejection test that is based on cell-free DNA in 2019 and described its progress in breast cancer research.
Senator Elizabeth Warren (D-Mass.) has released the results of a genetic ancestry analysis, the Boston Globe reports.
Retraction Watch's Ivan Oransky and Adam Marcus report that Harvard Medical School and Brigham and Women's Hospital have recommended that more than 30 papers from a former researcher be retracted.
Thomas Steitz, who won the 2009 chemistry Nobel Prize for his ribosome work, has died, the Washington Post reports.
In PLOS this week: mechanisms for genes implicated in coronary artery disease, rumen microbes and host genetics influence cow methane production, and more.