Personalis, Inc. (NASDAQ:PSNL) dropped more than 8% Monday morning following VA MVP (U.S. Department of Veterans Affairs Million Veteran Program) update. According to the company, VA MVP has issued a new task order for $10 million, which is lower than what most investors were expecting.

Despite this near-term weakness, analysts at Oppenheimer see favorable upside/downside for both near-term expansion (new task order is through March 31, 2022) and VA's long-term commitment to the program. More importantly, the brokerage noted that the non-VA oncology business continues to exceed their estimates, with the company raising its non-VA outlook by $0.5 million for Q3, by $1 million for 2021, and issuing a new 2022 target of 50% growth implying $51–52.5 million.