Leerink Partners analyst Puneet Souda has maintained their bullish stance on GH stock, giving a Buy rating yesterday.
Puneet Souda has given his Buy rating due to a combination of factors that highlight Guardant Health’s strategic advancements and growth potential. The recent announcement that Shield, Guardant Health’s product, has secured coverage from the Department of Veterans Affairs Community Care Network is a significant milestone. This coverage will benefit veterans aged 45 and older, expanding Shield’s total addressable market by adding 3 million new lives aged 45-64, which represents a 6.7% increase.
Furthermore, the expanded coverage is a testament to Shield’s growing momentum, following its recent ADLT pricing approval. This approval has increased management’s expected average selling price for 2025, which is projected to generate additional revenue. The company plans to reinvest these revenues into expanding its sales force and increasing commercial volumes in key states. Guardant Health’s management is confident in reaching their target of screening 1 million lives annually by 2028, leveraging multiple strategic avenues to achieve this goal.
GH’s price has also changed dramatically for the past six months – from $22.300 to $46.460, which is a 108.34% increase.