Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Thursday, BTIG analyst Mark Massaro adjusted the price target for Exact Sciences (NASDAQ:EXAS) shares, reducing it to $65 from the previous $75, while still recommending a Buy rating for the stock. According to InvestingPro data, analyst targets range from $61 to $95, with a strong consensus recommendation of 1.44 (Buy). Massaro’s commentary highlighted Exact Sciences’ quarterly performance, noting a slight revenue beat for Q4. The company’s screening and precision oncology segments saw year-over-year growth of 13% and 4%, respectively, in 2024.
Exact Sciences reported approximately $2.75 billion in revenue for 2024, marking a 10% increase from the previous year. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 3.25, though it trades at a relatively high EV/EBITDA multiple. The company also achieved $323 million in adjusted EBITDA, which translates to a 12% EBITDA margin, and generated $211 million in cash flow from operations. Despite these positive figures, the company’s Q1 guidance for 2025 was set lower than analyst and Street expectations, attributed mainly to seasonal trends and holidays.
The company has indicated strategic investments will be made throughout the year, particularly in anticipation of launching three new tests. These include Cologuard Plus in early Q2 2025, Oncodetect MRD in Q2, and CancerGuard (MCED) in the second half of the year. While these investments are expected, Exact Sciences also anticipates an approximately 200 basis points expansion in EBITDA margins for the year and is targeting an adjusted EBITDA margin of over 20% by 2027.
Massaro suggested that Exact Sciences’ shares might remain relatively stable until the anticipated mid-2025 readout of its significant CRC blood test. However, he also noted potential competitive dynamics that could influence the stock in the short term. Despite these considerations and the revised price target, BTIG maintains a positive outlook on Exact Sciences with a continued Buy rating. For deeper insights into Exact Sciences’ financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s competitive position and future potential.
In other recent news, Exact Sciences Corp. reported fourth-quarter earnings that exceeded expectations, with adjusted earnings per share of -$0.06, surpassing analyst estimates of -$0.33. The company’s revenue reached $713.4 million, outperforming the consensus forecast of $694.92 million and marking a 10% year-over-year increase. Screening revenue, including the Cologuard test, rose 14% to $553 million, while Precision Oncology revenue remained steady at $161 million. Additionally, Exact Sciences announced plans to launch the Oncodetect MRD test in the second quarter of 2025, with clinical validation data showing strong associations with cancer recurrence. Barclays (LON:BARC) initiated coverage on Exact Sciences with an Overweight rating and a $70 price target, highlighting the company’s solid market position and attractive valuations. Meanwhile, CFRA upgraded the company from Hold to Buy, raising the price target to $72, citing anticipated sales growth and profitability improvements. Exact Sciences’ new Cologuard Plus test, approved by the FDA, is expected to drive revenue growth due to its increased sensitivity and specificity. These developments reflect a dynamic period for Exact Sciences as it continues to expand its product offerings and strengthen its market presence.
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