Veracyte initiated with an Outperform at Wolfe on growth, margin potential

As previously reported, Wolfe Research initiated coverage of Veracyte (VCYT) with an Outperform rating and $50 price target The genomic diagnostics company provides tests and services to improve patient care against diseases such as thyroid, breast, and lung cancer, including the Afirma test for thyroid nodule assessment and the Decipher Genomic Classifier, which helps guide treatment decisions for prostate and bladder cancers, the analyst tells investors. Veracyte has evolved from being “a good product with solid science into a real company with a growth portfolio that has clearly become self-sustaining,” says the analyst, who expects continued high-single to low-double digit revenue growth and for EBITDA margins to move up to closer to 30% over the next five years.