Benchmark maintains Buy on Exact Sciences, price target at $65

Published 28/03/2025, 16:12
Benchmark maintains Buy on Exact Sciences, price target at $65

Friday, Benchmark analysts reiterated their Buy rating on Exact Sciences (NASDAQ:EXAS) shares, maintaining a price target of $65.00. According to InvestingPro data, the stock appears undervalued, with analyst targets ranging from $52 to $86 and a strong consensus recommendation of 1.46 (Buy). The firm adjusted its 2025 revenue forecast for the company downward to $3.040 billion from the previous estimate of $3.065 billion. Additionally, the projection for Adjusted EBITDA was revised to $415 million from $541 million.

The analysts noted that the primary growth catalyst for Exact Sciences in 2025 is expected to be the Cologuard franchise. This optimism is fueled by the anticipated release of Cologuard Plus and the projected increase in demand from repeat screenings and Care Gap testing initiatives. The company has demonstrated solid growth with revenue reaching $2.76 billion in the last twelve months, showing a 10.4% increase. Get deeper insights into Exact Sciences’ growth potential with 12+ exclusive ProTips available on InvestingPro.

Exact Sciences is also preparing to launch several new products that are likely to contribute to the company’s growth. The Oncodetect Molecular Residual Disease Test is slated for release in the second quarter of 2025. Furthermore, the Cancerguard Multi-Cancer Early Detection Test is scheduled for introduction in the second half of 2025.

Despite the reduced revenue and EBITDA estimates, Benchmark has not altered its rating or price target for Exact Sciences stock. The firm’s outlook remains positive, underpinned by the company’s robust pipeline of innovative cancer detection tests and the expected expansion of its Cologuard product line.

In other recent news, Exact Sciences reported a strong fourth-quarter performance with adjusted earnings per share of -$0.06, surpassing analyst estimates of -$0.33. The company’s revenue for the quarter was $713.4 million, exceeding expectations of $694.92 million and marking a 10% year-over-year increase. Screening revenue, driven by the Cologuard test, increased by 14% to $553 million, while Precision Oncology revenue remained steady at $161 million. Despite these positive results, the company’s 2025 revenue guidance of $3.025-$3.085 billion aligned with analyst expectations but did not excite investors.

In analyst updates, Stifel maintained a Buy rating with a $67 price target, recognizing Exact Sciences’ alignment with management’s expectations. TD Cowen also reiterated a Buy rating with an $86 target, expressing confidence in the company’s conservative guidance and potential sales growth. Meanwhile, BTIG adjusted its price target to $65 from $75 but maintained a Buy rating, noting the company’s strategic investments in new tests like Cologuard Plus and Oncodetect MRD.

Additionally, Sera Prognostics announced the appointment of Jeff Elliott to its Board of Directors, effective immediately. Elliott’s extensive experience in the diagnostics sector is expected to support the company’s growth, particularly following positive results from the PRIME study. These developments underscore the ongoing strategic efforts within both Exact Sciences and Sera Prognostics to enhance their market positions and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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