Exact Sciences stock rises as Canaccord maintains Buy rating

Investing.com - Exact Sciences (NASDAQ:EXAS) stock rose after Canaccord Genuity reiterated its Buy rating and maintained its $75.00 price target on the cancer diagnostics company. According to InvestingPro data, the stock currently trades at $55.31, with analysts setting targets ranging from $54 to $90, reflecting strong market confidence. Three analysts have recently revised their earnings estimates upward.

The reaffirmation follows Exact Sciences’ announcement on Wednesday that its Oncodetect molecular residual disease (MRD) test received Medicare coverage through the Centers for Medicare & Medicaid Services’ Molecular Diagnostic Services Program.

The coverage applies to serial use in patients with stage II, III, and resectable stage IV colorectal cancer in both adjuvant and recurrence monitoring settings over a five-year period.

This Medicare reimbursement approval represents a significant milestone that investors had been anticipating, potentially coinciding with the Oncodetect launch.

While Canaccord noted that Oncodetect will not contribute meaningfully to revenue for multiple quarters or possibly years, the firm believes the reimbursement decision unlocks Exact Sciences’ long-term growth potential in the molecular residual disease market. Discover more insights and 6 additional ProTips about EXAS with a subscription to InvestingPro, including detailed analysis of the company’s growth trajectory and valuation metrics.

In other recent news, Exact Sciences Corporation reported its first-quarter 2025 earnings, revealing significant revenue growth but falling short of earnings expectations. The company achieved a revenue of $707 million, surpassing analyst forecasts of $688.78 million, marking an 11% year-over-year increase. However, the earnings per share (EPS) came in at a loss of $0.54, which was deeper than the anticipated loss of $0.33. Despite the earnings miss, Exact Sciences raised its full-year revenue guidance to between $3.070 billion and $3.120 billion. Additionally, the company announced that its Oncodetect molecular residual disease test has secured Medicare coverage, a move that could expand access to earlier cancer detection for patients with colorectal cancer. Raymond (NSE:RYMD) James upgraded Exact Sciences’ stock rating to Market Perform, citing the positive Medicare coverage decision for the Oncodetect assay. Lastly, shareholders approved the 2025 Omnibus Long-Term Incentive Plan and an amendment to the Employee Stock Purchase Plan during the company’s annual meeting.

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