Canaccord maintains Guardant Health stock Buy rating and $42 target

Published 21/01/2025, 19:54
Canaccord maintains Guardant Health stock Buy rating and $42 target

The analyst from Canaccord Genuity noted Guardant Health (NASDAQ:GH)'s extensive experience in blood-based cancer detection as a competitive advantage, even as Natera (NASDAQ:NTRA) continues to develop its MRD capabilities through whole genome and tissue-free methods. The firm's confidence in Guardant Health's market position is reflected in the maintained Buy rating and price target, anticipating positive outcomes from the recent Medicare coverage decision and the company's strategic initiatives. With a market capitalization of $5.17 billion, Guardant Health continues to demonstrate its significance in the precision oncology market. With a market capitalization of $5.17 billion, Guardant Health continues to demonstrate its significance in the precision oncology market.

The Medicare coverage for the Reveal test in the surveillance setting could enable Guardant Health to tap into a significantly larger segment of the minimal residual disease (MRD) market. The firm highlighted the potential for cost of goods sold reduction, cash burn mitigation, and the securing of an Advanced Diagnostic Laboratory Test (ADLT) rate as key drivers that could further support the Reveal test's success.

The analyst from Canaccord Genuity noted Guardant Health's extensive experience in blood-based cancer detection as a competitive advantage, even as Natera (NTRA) continues to develop its MRD capabilities through whole genome and tissue-free methods. The firm's confidence in Guardant Health's market position is reflected in the maintained Buy rating and price target, anticipating positive outcomes from the recent Medicare coverage decision and the company's strategic initiatives. With a market capitalization of $5.17 billion, Guardant Health continues to demonstrate its significance in the precision oncology market.

The analyst from Canaccord Genuity noted Guardant Health's extensive experience in blood-based cancer detection as a competitive advantage, even as Natera (NTRA) continues to develop its MRD capabilities through whole genome and tissue-free methods. The firm's confidence in Guardant Health's market position is reflected in the maintained Buy rating and price target, anticipating positive outcomes from the recent Medicare coverage decision and the company's strategic initiatives.

In other recent news, Guardant Health has seen a series of significant developments. The company's Guardant Reveal test for colon cancer has been granted expanded Medicare coverage, enabling more comprehensive monitoring of colorectal cancer patients. UBS has also maintained a Buy rating on Guardant Health, naming it as its top pick in the Life Sciences & Diagnostic Tools group. The firm highlighted the company's underappreciated catalyst path, which includes the ramp-up of its Shield test in colorectal cancer screening.

Analysts from Jefferies and Piper Sandler have also maintained their Buy and Overweight ratings respectively on Guardant Health, with a focus on the company's impressive revenue growth of 29.2% over the last twelve months. In addition, Guardant Health has announced a partnership with pharmaceutical company Boehringer Ingelheim to seek regulatory approval for Guardant360® CDx, a liquid biopsy test, as a companion diagnostic for zongertinib, Boehringer's investigational drug for non-small cell lung cancer.

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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