In a report released yesterday, Tycho Peterson from Jefferies downgraded Exact Sciences to a Hold, with a price target of $105.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Tycho Peterson’s rating is based on the recent acquisition announcement by ABT, which has led to a downgrade of Exact Sciences from a Buy to a Hold. The acquisition price of $105 per share aligns with the price target, reflecting a fair valuation based on the expected sales multiple. Peterson believes that the acquisition premium is advantageous for Exact Sciences, and he does not foresee any competing bids due to historical deal comparisons.
Despite strong momentum in Exact Sciences’ core business, particularly with the Cologuard screening test and the promising prospects in the MRD and MCED markets, the uncertainties surrounding future developments, such as the blood assay launch and CMS coverage for Cancerguard, contribute to the Hold rating. These factors, combined with the acquisition context, suggest a balanced outlook where the stock is fairly valued at present.