Exact Sciences’ Growth Potential Boosted by NCCN Guideline Inclusion and Expanding Market Reach

Leerink Partners analyst Puneet Souda has maintained their bullish stance on EXAS stock, giving a Buy rating on June 2.

Puneet Souda has given his Buy rating due to a combination of factors that highlight the potential for growth and market expansion for Exact Sciences. The inclusion of liquid biopsy (LBx) in the NCCN’s colorectal cancer (CRC) screening guidelines is seen as a transformative event, placing it on par with established methods like colonoscopies and Cologuard. This development is expected to catalyze other guideline agencies, such as the American Cancer Society (ACS), to support similar screening products, thereby expanding the market reach.
Furthermore, the growing primary care sales force is anticipated to effectively disseminate the NCCN guideline message, bolstering the volume momentum for Shield, a product of Exact Sciences, for the remainder of the year. Although the immediate impact on state coverage mandates might be limited, the potential for incremental commercial coverage improvements is seen as a positive outcome. The anticipation of a USPSTF guidelines update in the coming years is also considered a key catalyst, as a favorable recommendation could lead to broader insurance coverage, enhancing the company’s market position.

In another report released on June 2, Wells Fargo also maintained a Buy rating on the stock with a $68.00 price target.

EXAS’s price has also changed slightly for the past six months – from $61.690 to $56.130, which is a -9.01% drop .