Veracyte initiated with a Hold at Canaccord

Canaccord analyst Kyle Mikson initiated coverage of Veracyte (VCYT) with a Hold rating and $40 price target The company’s Afirma tests for thyroid nodule classification and Decipher tests for risk stratification of prostate cancer could support solid near-term revenue growth, the analyst tells investors in a research note. However, the firm says both markets are highly penetrated and that is is uncertain if Veracyte’s test platform transition strategy and pipeline will drive long-term growth.