Veracyte’s Strong Q4 2024 Performance and Strategic Moves Justify Buy Rating

Michael Matson, an analyst from Needham, maintained the Buy rating on Veracyte (VCYT – Research Report). The associated price target remains the same with $51.00.

Michael Matson has given his Buy rating due to a combination of factors including Veracyte’s strong financial performance in the fourth quarter of 2024. The company surpassed consensus expectations in both revenue and non-GAAP earnings per share, indicating robust operational efficiency and market demand for its products.
Despite a slowdown in overall revenue growth compared to the previous quarter, Veracyte’s key offerings, Decipher and Afirma, continued to exhibit strong growth. Although there were declines in the Biopharma and Product segments, the company’s adjusted EBITDA margin showed significant improvement. Additionally, while the potential sale of its French subsidiary may pose a short-term revenue challenge, it is expected to enhance overall margins, contributing to a positive long-term outlook.

Based on the recent corporate insider activity of 74 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 VCYT in relation to earlier this year.