Puneet Souda, an analyst from Leerink Partners, maintained the Buy rating on Veracyte. The associated price target is $45.00.
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Puneet Souda has given his Buy rating due to a combination of factors, primarily focusing on Veracyte’s strong clinical evidence supporting the adoption of its core tests, Decipher and Afirma. The company’s second-quarter revenue of $130.16 million surpassed expectations, and management has provided optimistic guidance for the fiscal year 2025, indicating increased visibility and raised revenue targets. Additionally, the company has improved its EBITDA margin guidance, reflecting operational efficiency.
Decipher’s market strength is highlighted by a 28% increase in test volumes, driven by its inclusion in NCCN guidelines and expanding market share. The company’s management estimates a significant market share with potential for further growth. Afirma also shows solid performance with an 8% volume increase. These factors, combined with strategic launches and growing interest from medical professionals, underpin Veracyte’s positive outlook and justify the Buy rating.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $31.00 price target.