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Exact Sciences’ Growth Potential Bolstered by Cologuard Plus and Strategic Medicare Advantage Agreement

Exact Sciences’ Growth Potential Bolstered by Cologuard Plus and Strategic Medicare Advantage Agreement

Leerink Partners analyst Puneet Souda has maintained their bullish stance on EXAS stock, giving a Buy rating on July 22.

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Puneet Souda has given his Buy rating due to a combination of factors that highlight Exact Sciences’ potential for growth and profitability. One of the primary reasons is the recent announcement that Cologuard Plus will be available as an in-network test for HUM’s Medicare Advantage members. This development is expected to drive an increase in average selling price (ASP) beyond the previously guided 2%, as it opens up new reimbursement opportunities beyond fee-for-service Medicare.
Additionally, the improved performance of Cologuard Plus over its predecessor, with higher sensitivity and specificity, is expected to reduce false positives significantly, making it more appealing to healthcare providers. The company is also seeing positive ASP momentum with fee-for-service Medicare, and private payor coverage is crucial for continued ASP growth. These factors, combined with the potential cost of goods sold (COGS) benefits from the new agreement, support the Buy rating as they indicate a strong market position and financial outlook for Exact Sciences.

In another report released on July 22, Canaccord Genuity also maintained a Buy rating on the stock with a $75.00 price target.

EXAS’s price has also changed moderately for the past six months – from $56.050 to $46.950, which is a -16.24% drop .

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