William Blair analyst Andrew Brackmann has reiterated their bullish stance on GH stock, giving a Buy rating today.
Andrew Brackmann has given his Buy rating due to a combination of factors including Guardant Health’s recent achievement of advanced diagnostic laboratory test (ADLT) status for its Shield blood-based test for colorectal cancer screening. This milestone is significant as it positions Shield as the first average risk screening test to obtain such status, which was anticipated but arrived earlier than expected. The ADLT status is expected to enhance the company’s reimbursement rates from the Centers for Medicare & Medicaid Services (CMS), potentially aligning with or exceeding their long-term target pricing.
This improved reimbursement scenario is projected to bolster Guardant Health’s ability to invest in commercial ventures and the launch of its multi-cancer detection test. The ADLT status allows the company to receive CMS reimbursement at Shield’s list price, significantly higher than previous Medicare rates, which should positively impact their financial outlook. Consequently, this development supports the company’s strategic pricing and revenue targets, reinforcing Brackmann’s confidence in maintaining an Outperform rating for Guardant Health.
According to TipRanks, Brackmann is an analyst with an average return of -4.4% and a 27.27% success rate. Brackmann covers the Healthcare sector, focusing on stocks such as Guardant Health, Veracyte, and NeoGenomics.