Analyst Daniel Brennan of TD Cowen maintained a Buy rating on Exact Sciences, reducing the price target to $66.00.
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Daniel Brennan has given his Buy rating due to a combination of factors that highlight the potential for Exact Sciences’ future growth. Despite a significant drop in stock price following disappointing CRC blood data, Exact Sciences demonstrated strong performance in their second quarter, particularly with Cologuard revenue exceeding expectations and improved EBITDA margins. Additionally, the company has taken proactive steps by securing a deal with Freenome to access their blood-based CRC test, which is expected to receive FDA approval by 2026.
This strategic move is anticipated to accelerate Exact Sciences’ market entry for a blood test and offers a promising pipeline beyond the initial CRC test. While there are concerns about the costs and reliance on a third-party program, the overall outlook remains positive, especially given the strong quarterly results and the potential for an FDA-approved blood test. Brennan believes that the market’s reaction was overly negative, and the company’s strategic actions position it well for future success, justifying the Buy rating.
Brennan covers the Healthcare sector, focusing on stocks such as Bruker, Illumina, and Qiagen. According to TipRanks, Brennan has an average return of 9.2% and a 43.70% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $55.00 price target.