e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - Canaccord Genuity raised its price target on Veracyte, Inc (NASDAQ:VCYT) to $43.00 from $40.00 while maintaining a Hold rating following the company’s third-quarter earnings report. The new target sits just below the analyst high target of $45.00, with InvestingPro data showing the stock currently trading at $36.12, closely aligned with its Fair Value.
The diagnostic testing company reported third-quarter 2025 results on Tuesday that exceeded both Canaccord’s estimates and FactSet consensus. Veracyte demonstrated particularly strong performance in its Decipher Prostate segment, which saw revenue and volume increase 26% year-over-year. This strong segment performance contributes to the company’s impressive 19.91% overall revenue growth over the last twelve months.
Veracyte achieved a 30% adjusted EBITDA margin in the third quarter, prompting the company to pull forward its margin target of over 25% by more than a year. This improved margin outlook was the primary driver behind Canaccord’s price target increase. InvestingPro data reveals the company’s EBITDA stands at $63.78 million, with an EV/EBITDA ratio of 39.44, indicating investors are paying a premium for the company’s improving profitability.
The company raised its 2025 revenue guidance and reported progress on completing key product transitions and launching new products. Both its Decipher and Afirma testing segments showed solid performance during the quarter. Revenue is forecast to grow 12% in fiscal 2025, building on the company’s impressive 30% revenue CAGR over the past five years.
Despite the positive results, Canaccord maintained its Hold rating on Veracyte stock, noting that the current share price likely already reflects the company’s revenue and margin upside potential. The firm indicated it remains "on the sidelines" until gaining more visibility into long-term growth drivers. This cautious stance aligns with InvestingPro data showing Veracyte trading at a high P/E ratio of 108.73, though its PEG ratio of 0.75 suggests it may be undervalued relative to its growth rate. InvestingPro identifies 13 additional investment tips for VCYT, available through the comprehensive Pro Research Report.
In other recent news, Veracyte Inc . reported its third-quarter 2025 earnings, revealing a strong performance that exceeded analysts’ expectations. The company achieved earnings per share (EPS) of $0.51, surpassing the anticipated $0.32, marking a 59.38% surprise. Additionally, Veracyte’s revenue reached $131.9 million, exceeding the forecasted $124.78 million. These results highlight Veracyte’s robust financial health and ability to outperform market predictions. Despite the positive earnings report, Veracyte’s stock experienced a decline during regular and aftermarket trading. The company’s stock fell by 0.93% to $36.11 in regular trading and further dropped by 4.53% in aftermarket trading, closing at $34.80. This divergence between financial performance and stock movement may capture investor attention. These developments reflect the company’s current market dynamics and investor sentiment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.