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On Friday, BTIG analyst Mark Massaro increased the price target for Guardant Health (NASDAQ:GH) to $60 from $55, maintaining a Buy rating on the stock. The new target sits within the broader analyst range of $34-$65. Massaro’s statement highlighted Guardant Health’s strong performance in 2024, evidenced by an impressive 109% return over the past year and 68% gain in the last six months. The company anticipates acceleration across its entire product range in 2025, reflecting confidence in its portfolio of tests and commercial team capabilities.
Guardant Health has set forth a guide for 2025 that Massaro believes the company is well-equipped to achieve, with potential for exceeding expectations. With a solid revenue growth of 31% and a strong financial health score according to InvestingPro, which offers 8 additional key insights about the company’s prospects, the foundation appears robust. He pointed out that while Shield, one of Guardant’s products, has not been fully recognized for its value, other offerings like Reveal and the flagship G360 franchise are also not getting the appreciation they deserve.
Massaro reiterated Guardant Health as BTIG’s top pick, underscoring the raised price target and the maintained Buy rating. He emphasized the company’s strong position and the anticipated catalysts that could drive performance throughout the year.
Guardant Health’s commitment to its product line and the confidence expressed in its ability to execute on the 2025 guide are seen as key factors for its continued growth. The raised price target from BTIG reflects a positive outlook for the company’s stock in the coming year.
In other recent news, Guardant Health reported fourth-quarter earnings that exceeded analyst expectations, with total revenues reaching $202 million, surpassing consensus estimates by 7%. The company’s precision oncology revenue saw a 30% increase, reaching $184.6 million, driven by a 24% rise in clinical test volumes and a 16% increase in biopharma tests. Guardant Health raised its revenue guidance for 2025 to between $850 million and $860 million, slightly above the analyst consensus of $850.3 million. The company anticipates a significant acceleration in volume growth, with projections for its Shield product revenue to reach $25 million to $30 million.
Analysts from Bernstein and Citi have raised their price targets for Guardant Health to $60, maintaining an Outperform and Buy rating, respectively. BofA Securities also increased its target to $56, citing the company’s strong fiscal year 2025 sales forecast. The anticipated growth in oncology is expected to be around 15% year-over-year, with a notable increase in volume growth to approximately 25% in 2025. Guardant Health is also managing its expenses efficiently, with operational expenses expected to grow by only 8-9% year-over-year.
In addition to its financial performance, Guardant Health’s Shield colorectal cancer screening test has been selected for inclusion in the NIH Vanguard multi-cancer detection study. Despite these positive developments, the company’s stock saw a slight decline in after-hours trading, possibly due to significant stock price appreciation over the past year.
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