Guardant Health’s Shield Test Gains Momentum with NCCN Guideline Inclusion, Driving Growth Prospects

Guardant Health (GH – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Tejas Savant from Morgan Stanley maintained a Buy rating on the stock and has a $60.00 price target.

Tejas Savant has given his Buy rating due to a combination of factors surrounding Guardant Health’s recent developments. The inclusion of Guardant Health’s Shield test in the NCCN colorectal cancer screening guidelines marks a significant milestone, as it recommends the test for average-risk individuals, with a follow-up colonoscopy for positive results. This inclusion is expected to drive community adoption and enhance commercial payor reimbursement over time.
Additionally, the guideline update indicates a positive trajectory for blood-based cancer screening modalities, potentially leading to further endorsements, such as from the American Cancer Society. Despite some concerns about Shield’s sensitivity compared to other screening methods, the target market of unscreened individuals in the US remains substantial. Overall, these developments are seen as a positive catalyst for Guardant Health’s growth and market presence.

In another report released yesterday, Raymond James also reiterated a Buy rating on the stock with a $59.00 price target.

Based on the recent corporate insider activity of 149 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GH in relation to earlier this year.