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On Wednesday, Morgan Stanley (NYSE:MS) analyst Tejas Savant increased the price target on Guardant Health shares (NASDAQ:GH) to $52.00 from $42.00, while maintaining an Overweight rating. This target falls within the broader analyst range of $42-$65, with the consensus showing a strong buy rating. According to InvestingPro data, the stock has delivered an impressive 121% return over the past year, though price movements remain notably volatile.
Guardant Health, a precision oncology company, has been under the scrutiny of investors, particularly following the recent financial updates from companies in the healthcare sector. The company’s solid financial position is evidenced by a healthy current ratio of 4.68 and strong revenue growth of 31% year-over-year. Savant’s updated price target suggests a confidence in the company’s growth trajectory and market position. Discover more insights with InvestingPro, which offers 8 additional exclusive tips and comprehensive financial analysis for Guardant Health.
In contrast, the analyst provided insights into Cricut ’s (NASDAQ:CRCT) fourth-quarter earnings report, highlighting several key points from the management’s discussion. The report outlined management’s plans to increase marketing investments to enhance engagement with new users and improve international brand awareness. Despite a positive trend in paid subscriber numbers, Cricut experiences mixed results in overall user engagement.
Furthermore, the management of Cricut anticipates revenue declines in the first half of 2025, along with a contraction in operating margins as the company plans to invest in research and development, marketing, and intellectual property protection. However, they remain committed to achieving long-term operating margin targets of 15-19%.
Based on these insights and the current market conditions, Morgan Stanley reiterates a Neutral rating on Cricut shares. The firm has adjusted its forward operating estimates in light of the earnings report and has reduced the 12-month price target for Cricut from $5.75 to $5.25. Investors are expected to closely monitor Cricut’s operational progress and management’s ability to meet long-term financial goals, especially in the second half of 2025 when an inflection in revenue and user engagement trends is anticipated. For deeper analysis and exclusive insights on both companies, access the comprehensive Pro Research Reports available on InvestingPro, covering over 1,400 US stocks with actionable intelligence for smarter investing decisions.
In other recent news, Guardant Health reported fourth-quarter earnings for 2024 that aligned with its preannouncement, achieving a total revenue of $202 million, which exceeded consensus estimates by 7%. The company’s gross margin was reported at 62%, surpassing expectations by 2 percentage points. Citi analysts raised their price target for Guardant Health to $60, maintaining a Buy rating, following the strong earnings report and a 24% year-over-year growth in clinical test volumes. BTIG also increased their price target to $60, highlighting Guardant Health’s robust 2024 performance and positive outlook for 2025.
Bernstein SocGen Group echoed this sentiment by raising their price target to $60 while maintaining an Outperform rating, noting the potential for Guardant Health to exceed expectations in the screening market. Canaccord Genuity maintained a Buy rating and also raised their price target to $60, citing anticipated revenue growth driven by clinical and biopharma test volumes. The company’s Reveal test, used for detecting minimal residual disease, is expected to benefit from expanded reimbursement coverage, potentially increasing its adoption. Guardant Health provided a revenue guidance for 2025, projecting an increase of 19-20% over the previous year, excluding prior period revenue from 2024. The company anticipates revenue from its Shield product to reach between $25 million and $30 million in 2025, with expected revenue and volume growth more concentrated in the latter half of the year.
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