Needham analyst Michael Matson has reiterated their bullish stance on VCYT stock, giving a Buy rating on August 4.
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Michael Matson has given his Buy rating due to a combination of factors including Veracyte’s strong financial performance and promising growth prospects. The company reported better-than-expected revenue and non-GAAP EPS for the second quarter of 2025, and management has provided revenue guidance for 2025 that exceeds consensus expectations. Additionally, Veracyte has increased its guidance for testing revenue and adjusted EBITDA margin for the year.
Despite a slight slowdown in revenue growth compared to the previous quarter, Veracyte’s strong performance in its Decipher and Afirma product lines demonstrates its resilience against challenging comparisons from the previous year. The company’s non-GAAP gross margin and adjusted EBITDA margin have shown significant year-over-year improvements. Furthermore, Veracyte’s strategic growth initiatives, such as the expansion of MRD tests and kitted tests in Europe, along with its solid financial position with no debt and substantial cash reserves, underscore its potential for sustained double-digit growth in the coming years. These factors contribute to the belief that Veracyte’s shares are currently undervalued, supporting the Buy recommendation.