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Tuesday, Jefferies reiterated a Buy rating on Guardant Health (NASDAQ:GH) stock with a price target of $42.00. The stock, currently trading at $35.23, has shown remarkable momentum with a 17.45% gain over the past week. According to InvestingPro data, analyst price targets range from $34 to $60, suggesting potential upside.
Jefferies analyst highlighted the company's inclusion in the Vanguard study as a positive development, despite anticipating little to no immediate revenue impact and a slight increase in costs, estimated between $10-20 million, likely in research and development, during the study period. With a solid financial health score of 2.57 on InvestingPro and impressive revenue growth of 29.2% over the last twelve months, the company appears well-positioned to absorb these additional costs.
The two assays Guardant Health provides will not be compared against each other in the study but rather against a control arm. Results from a National Cancer Institute verification study, which includes all validated tests, are expected to be released early in 2025. These results could potentially benefit Guardant Health if their data is superior to that of their peers.
Looking ahead, Guardant Health is expected to pre-announce its fourth-quarter results next week, providing preliminary insights into revenues and volumes, as well as updates on its product pipeline. The focus will likely be on the Shield product, with the market anticipating approximately $25 million in Shield revenues for 2025. Additionally, Guardant Health's Reveal product, which currently averages 1.7 tests per patient, could see a significant uptick if it secures surveillance reimbursement and applies for Advanced Diagnostic Laboratory Test (ADLT) status, which could enhance pricing.
Jefferies expressed continued optimism for Guardant Health's prospects in 2025, acknowledging potential volatility due to upcoming competitor data releases from Natera (NASDAQ:NTRA) and Exact Sciences (NASDAQ:EXAS) expected later this month. Want deeper insights? InvestingPro subscribers get access to exclusive financial metrics, 6 additional ProTips, and comprehensive research reports covering 1,400+ top stocks, including Guardant Health.
In other recent news, Guardant Health has been the subject of several notable developments.
The precision oncology company reported its financial results for the third quarter of 2024, with an absence of reported financial misses indicating that it may have met its expectations for the quarter. Furthermore, Guardant Health has announced a partnership with pharmaceutical company Boehringer Ingelheim to seek regulatory approval for Guardant360® CDx, a liquid biopsy test, as a companion diagnostic for zongertinib, Boehringer's investigational drug for non-small cell lung cancer.
Piper Sandler maintained its Overweight rating on Guardant Health shares, reflecting broader analyst sentiment as 10 analysts have recently revised their earnings expectations upward. The company has shown impressive revenue growth of 29.2% over the last twelve months and maintains robust financial flexibility with a healthy gross profit margin of 60.31%. Piper Sandler's analysis is supported by a recent survey of 38 oncologists indicating a positive outlook for companies like Guardant Health.
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