11:19 AM EDT, 08/13/2024 (MT Newswires) -- Natera ( NTRA ) reported better-than-expected Q2 revenue on volume growth and average selling price momentum, but its second-half outlook leaves "ample room" for upside, Morgan Stanley said in a note e-mailed Tuesday.

Late Thursday, the company posted Q2 revenue of $413.4 million, up from $261.4 million a year earlier. Analysts polled by Capital IQ expected $377.7 million. The company said at the time it expected full-year revenue of $1.49 billion to $1.52 billion, up from its prior outlook of $1.42 billion to $1.45 billion.

"We see the new revised guide as meaningfully conservative, reflecting essentially flat ASPs in [H2], providing ample room for [near-term] beats/raises," Morgan Stanley said in a note to clients. "In a sleeve of our coverage where profitable growth at scale remains elusive, a near-term line of sight to profitability and accelerated achievement of cash flow breakeven deserve credit."

The brokerage raised its price target on the Natera ( NTRA ) stock to $132 from $125 while reiterating its overweight rating.

The company's shares were up 3.2% in recent trading.

Price: 118.88, Change: +3.63, Percent Change: +3.15