Tycho Peterson, an analyst from Jefferies, reiterated the Buy rating on Exact Sciences (EXAS – Research Report). The associated price target was lowered to $80.00.
Tycho Peterson has given his Buy rating due to a combination of factors that highlight Exact Sciences’ promising future prospects. The company is well-positioned in the market with its Cologuard Plus product, which is expected to see a significant pricing lift and transition over the next 18-24 months. With existing contracts covering 80% of lives through 800 payors, including the top ten, Exact Sciences is poised to capitalize on its established relationships and the increasing comfort level among larger payors.
Furthermore, the upcoming launch of their blood-based screening and MCED products presents additional growth opportunities. The blood-based screening is anticipated to capture a significant portion of the market, potentially reaching 10% of the total addressable market. The MCED launch, despite current limitations with Medicare coverage, is expected to be a long-term growth driver, leveraging the company’s existing sales force and technology platform. These strategic initiatives, along with efforts to improve adherence rates, are expected to drive substantial revenue growth and enhance Exact Sciences’ market position.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $63.00 price target.