Benchmark Co. analyst Bruce Jackson maintained a Buy rating on Exact Sciences (EXAS – Research Report) today and set a price target of $65.00.
Bruce Jackson’s rating is based on a combination of factors that highlight the potential growth of Exact Sciences. The company is set to launch Cologuard Plus in the second quarter of 2025, which is expected to be a significant growth driver. This new version of the test offers enhanced performance metrics, such as 95% cancer sensitivity and 94% specificity, which could lead to higher adoption rates among healthcare providers. The improved test is anticipated to reduce unnecessary colonoscopies, thus saving costs for healthcare systems.
Furthermore, Exact Sciences has a robust pipeline with upcoming products like the Oncodetect Molecular Residual Disease Test and the Cancerguard Multi-Cancer Early Detection Test, both slated for release in 2025. These innovations are expected to contribute to the company’s revenue growth, with a projected 11% increase at the midpoint for 2025. The company’s guidance also suggests margin expansion, which further supports the Buy rating. Despite a slight reduction in earnings forecasts, the overall outlook remains positive, driven by the strong performance and acceptance of new products.
In another report released today, Guggenheim also maintained a Buy rating on the stock with a $60.00 price target.