Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Leerink Partners has raised its price target on Guardant Health (NASDAQ:GH) to $75.00 from $70.00 while maintaining an Outperform rating on the stock. The new target represents significant upside potential from the current price of $57.67, with the stock already showing impressive gains of 158.61% over the past year.
The revision follows Guardant Health’s investor day, where the company updated its 2028 long-range plan to $2.2 billion in revenue, an increase from the $2 billion target set at its 2023 investor day. The company has demonstrated strong revenue growth, with a 28.74% increase in the last twelve months to $828.85 million. InvestingPro analysis reveals additional insights about Guardant Health’s growth trajectory and financial health metrics.
Leerink views the updated revenue target as conservative, noting it doesn’t account for potential average selling price upside driven by Advanced Diagnostic Laboratory Tests (ADLT). The firm also highlighted conservative assumptions in Shield volume projections. The company maintains a strong liquidity position with a current ratio of 3.71, indicating robust ability to meet short-term obligations.
Guardant Health has moved up its expected free cash flow breakeven timeline by 12 months to the fourth quarter of 2027, according to Leerink’s analysis.
The research firm sees Guardant executing well across its three core franchises - G360, Reveal, and Shield - with potential for meaningful upside in 2026 driven by product launches and reimbursement developments.
In other recent news, Guardant Health has been the focus of several analyst updates following its Analyst Day. Wolfe Research upgraded Guardant Health’s stock rating from Peerperform to Outperform, setting a price target of $75. This change comes as Wolfe Research acknowledged a previous underestimation of Guardant Health’s growth prospects, particularly concerning its G360 franchise. BTIG also raised its price target for Guardant Health to $80 from $70, maintaining a Buy rating, noting that the company exceeded expectations by increasing its average selling price assumptions and boosting its 2028 revenue target by $200 million.
Stifel joined in by raising its price target to $70 from $60, citing Guardant’s portfolio expansion and upcoming product launches as indicators of the company’s strength. UBS reiterated its Buy rating ahead of the Analyst Day, emphasizing the importance of market analyses for specialty diagnostics laboratories. Similarly, Canaccord Genuity maintained its Buy rating and a $65 price target, suggesting that the upcoming Investor Day would highlight Guardant Health’s progress since its last investor event. These recent developments indicate a positive shift in analyst sentiment toward Guardant Health, driven by the company’s strategic initiatives and future growth potential.
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