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Investing.com - Evercore ISI reiterated its Outperform rating and $60.00 price target on Guardant Health (NASDAQ:GH) stock, citing strong growth prospects through 2027. The company, currently valued at $6.2 billion, has demonstrated impressive momentum with a 64% year-to-date return, according to InvestingPro data.
The firm expects Guardant Health to achieve over 20% top-line growth through 2027, driven by the company’s leadership in liquid therapy selection and its emerging tissue testing business (TissueNext). This projection aligns with the company’s current performance, showing strong revenue growth of 28.2% in the last twelve months.
Evercore ISI highlighted that Guardant’s Reveal product should experience a positive inflection with gross margins now in positive territory and strong catalysts ahead, while Shield represents an upside opportunity with current focus on colorectal cancer (CRC) screening.
The research firm values the Shield business at approximately $1 billion, viewing CRC screening as a strategic entry point to the larger $50 billion+ multi-cancer early detection (MCED) market opportunity.
Evercore ISI projects a clear path to profitability for Guardant Health, noting that the core business excluding Shield is expected to reach breakeven by the end of fiscal year 2025, with total company breakeven anticipated by fiscal year 2028, approximately 12-18 months earlier than consensus estimates.
In other recent news, Guardant Health has made significant strides with its Shield multi-cancer detection (MCD) test, receiving Breakthrough Device designation from the U.S. Food and Drug Administration (FDA). This designation is part of the FDA’s program to expedite the development of devices that could improve the diagnosis or treatment of life-threatening diseases. The Shield test, which screens for multiple types of cancer in individuals aged 45 and older, was also selected by the National Cancer Institute for the Vanguard Study, highlighting its robust performance in cancer detection and tissue origin identification. Additionally, the test was presented at the American Society for Clinical Oncology Annual Meeting, where it demonstrated 98.6% specificity and 75% sensitivity in detecting various cancers.
In other developments, Mizuho (NYSE:MFG) raised its price target for Guardant Health to $65.00, citing a bullish outlook on the Shield test following the FDA’s designation. Meanwhile, UBS analysts reiterated their Buy rating with a $70.00 price target, emphasizing Guardant Health’s leadership in tumor profiling and promising cancer screening opportunities. Leerink Partners also maintained their Outperform rating with a $65.00 price target, highlighting Guardant’s strong position in the diagnostics market. These positive assessments from analysts reflect Guardant Health’s strategic developments and growth potential in the healthcare sector.
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