Raymond James maintains Outperform on Guardant Health, $39 target

Published 21/01/2025, 19:24
Raymond James maintains Outperform on Guardant Health, $39 target

On Tuesday, Guardant Health (NASDAQ:GH) shares maintained their Outperform rating with a steady price target of $39.00, as confirmed by Raymond (NSE:RYMD) James. The company's stock has shown remarkable strength, delivering a 58% return over the past year and currently trading near its 52-week high. According to InvestingPro analysis, while the firm's analysts highlighted the potential for growth in both volume and average selling price (ASP) for the company's product Reveal, as well as for its broader portfolio.

The analysts anticipate Reveal to significantly contribute to an increase in clinical volumes for the year 2025, excluding Shield, with expectations set for a growth rate exceeding 20%. This projection is bolstered by prospects of improved pricing structures and the company's strong revenue growth of 29.2% in the last twelve months, despite not yet achieving profitability. The positive outlook from Raymond James comes with an eagerness to gain further insights and refine their analytical model based on the fourth-quarter results expected in February. InvestingPro subscribers have access to 8 additional key insights about Guardant Health's financial health and growth prospects.

Guardant Health specializes in providing advanced cancer diagnostics through blood tests and data analytics, with Reveal being one of its key products designed to detect cancer early. The company's portfolio aims to offer comprehensive solutions for cancer detection and treatment monitoring.

Raymond James' endorsement is based on recent coverage news that is seen to open opportunities for increased product usage and higher pricing, which in turn could accelerate revenue growth for Guardant Health. The firm remains encouraged by these developments and awaits further details to emerge from the upcoming financial results.

In other recent news, Guardant Health has made significant strides in the healthcare sector. The company's Reveal test, designed to detect cancer recurrence, has been granted coverage by MolDX for use in the colorectal cancer recurrence setting. This development aligns with projections made by Guardant Health's management and has been recognized by TD Cowen, which has maintained a Buy rating on the company's shares.

Furthermore, the Reveal test has received expanded Medicare coverage, allowing for more comprehensive monitoring of colorectal cancer patients. This development has been positively received by BTIG, which has raised the price target for Guardant Health to $55, maintaining a Buy rating on the stock.

In addition to these advancements, Guardant Health has also 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. Analysts from Canaccord Genuity, Jefferies, and Piper Sandler have maintained their positive ratings on the company, reflecting confidence in its market position.

UBS has named Guardant Health as a top pick in the Life Sciences & Diagnostic Tools group, maintaining a Buy rating and a $40 price target. The company is expected to pre-announce its fourth-quarter results soon, providing preliminary insights into revenues and volumes, as well as updates on its product pipeline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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