Leerink Partners analyst Puneet Souda has maintained their bullish stance on GH stock, giving a Buy rating on April 15.
Puneet Souda has given his Buy rating due to a combination of factors related to Guardant Health’s strategic advancements in cancer detection. The company’s recent presentation at the AACR highlighted the performance of their Shield multi-cancer detection assay, which is poised to enhance their existing colorectal cancer (CRC) screening test. This new assay, which can detect multiple types of cancer, is expected to be launched soon and is seen as a valuable addition without incurring additional costs or changing the current pricing structure. This strategic move is anticipated to increase the assay’s market appeal and drive higher volumes, despite the multi-cancer detection component not yet being FDA approved.
Puneet Souda also noted that Guardant Health’s approach to leveraging their growing sales force to promote the assay is a key differentiator. The inclusion of free multi-cancer detection screening alongside the CRC test sets Shield apart from competitors, particularly as it is the only assay with insurance coverage. This aligns with the company’s strategy to establish a reimbursed base with CRC screening and expand with additional indications. The unchanged cost and COGS for the multi-cancer detection assay further support the financial viability of this expansion, reinforcing the Buy rating.
According to TipRanks, Souda is an analyst with an average return of -14.5% and a 26.87% success rate. Souda covers the Healthcare sector, focusing on stocks such as Illumina, Bruker, and Danaher.
In another report released on April 15, Bernstein also maintained a Buy rating on the stock with a $60.00 price target.