Natera (NTRA) is a leading player in the minimal residual disease, or MRD, oncology testing market with a "durable" competitive position, supported by improving reimbursement and broader clinical adoption, RBC Capital Markets said.

MRD monitoring is a high-value oncology diagnostics market where Natera holds a dominant position with more than 90% share, the analyst said in a note Thursday. The total addressable market is estimated at $15 billion to $30 billion and is increasingly accessible as reimbursement frameworks and clinical adoption continue to mature.

Natera's Signatera product generates annualized revenue of more than $1 billion and is growing at over 70% year over year. RBC said the broader MRD opportunity has been validated by rising industry activity, including new product launches, reimbursement progress, and acquisitions by major diagnostics companies over the past year.

However, Natera retains a meaningful reimbursement advantage, with coverage across seven Medicare indications compared with two for its closest competitor Guardant Health's Reveal test, both in colorectal cancer.

The brokerage said this reimbursement gap strengthens Natera's competitive moat, as newer entrants would need to absorb higher costs from a larger number of unreimbursed tests to compete on equal footing.

RBC resumed coverage of Natera with an outperform rating and a $275 price target.

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