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Investing.com - RBC Capital has lowered its price target on Exact Sciences (NASDAQ:EXAS) to $46.00 from $54.00 while maintaining a Sector Perform rating on the stock. The new target represents the low end of analyst expectations, with targets ranging from $46 to $90. According to InvestingPro data, the stock currently trades at $41.76 and appears undervalued based on its Fair Value analysis.
The price target reduction comes despite Exact Sciences reporting strong quarterly results, with approximately $40 million in revenue beat and a $55 million increase to its full-year 2025 guidance, which included about $8 million in license revenue. The company has maintained solid revenue growth of 12.56% over the last twelve months, though it remains unprofitable during this period.
RBC analyst commentary indicates the downgrade stems from concerns about Exact Sciences’ "ability to be a long-term competitor in blood-based liquid biopsy testing" following the company’s decision to acquire a competitive screening test after experiencing poor data from its own test.
The investment firm has adjusted its target multiple on the stock to reflect what it describes as a total addressable market (TAM) that is "essentially 1/3 of what it was yesterday."
RBC’s new price target is based on updated calendar year 2026 estimates for Exact Sciences, while the firm maintains its Sector Perform rating on the stock.
In other recent news, Exact Sciences reported impressive second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of -$0.01, which was significantly better than the anticipated -$0.13, resulting in a 92.31% EPS surprise. Revenue also exceeded forecasts, reaching $811.1 million compared to the expected $773.8 million, marking a 4.82% surprise. Despite these strong financial results, TD Cowen lowered its price target for Exact Sciences to $66 from $75, while maintaining a Buy rating, citing a blood test setback. Piper Sandler, on the other hand, reiterated its Overweight rating and maintained a $70 price target, emphasizing the company’s strong position in colorectal cancer screening and the shift towards noninvasive detection methods. These developments highlight the mixed analyst perspectives on Exact Sciences following its recent performance.
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