Gold prices steady ahead of Fed decision; weekly weakness noted
On Monday, Raymond (NSE:RYMD) James analysts maintained an Outperform rating and $59.00 price target on Guardant Health stock (NASDAQ: NASDAQ:GH), aligning with the broader analyst consensus that remains strongly bullish at 1.52 (where 1 is Strong Buy). With analyst targets ranging from $47 to $70, the stock shows significant upside potential from its current price of $41.48. This follows the National Comprehensive Cancer Network’s update to its colorectal cancer screening guidelines to include blood-based cfDNA testing, which is seen as a step forward for Guardant’s Shield test.
The updated guidelines suggest the test primarily for patients who would not opt for other screening methods. While the NCCN is significant in oncology treatment, it is not the primary guideline for screening. The American Cancer Society and the USPSTF are more influential in private payor coverage.
The analyst highlighted that the Shield test is recommended for individuals unwilling to undergo other screenings. This group, estimated at 50-60 million Americans, presents a substantial opportunity for Guardant Health.
The FDA’s approval of the Shield test does not limit it to being a secondary option, unlike a previous blood-based test. Analysts expect Shield’s adoption to grow, although the recommendation to use it only as an alternative could complicate its positioning against competitors like Exact Sciences (NASDAQ:EXAS)’ Cologuard.
Despite these challenges, analysts believe multiple screening modalities can coexist in the market, addressing the unscreened population’s needs. With a market capitalization of $5.17 billion and a Financial Health Score of 2.42 (FAIR) according to InvestingPro, Guardant Health appears positioned to capitalize on this opportunity. Subscribers to InvestingPro can access 6 additional key insights and a comprehensive Pro Research Report that provides deeper analysis of the company’s market position and growth potential.
In other recent news, Guardant Health has reported significant advancements in its testing capabilities, particularly with the Guardant360 Liquid test, which now includes enhanced biomarker identification and cancer subtyping features. These improvements aim to assist oncologists in developing more effective treatment plans by offering a blood-based alternative for accessing molecular profiling information. In addition, Guardant Health has launched a complete suite of immunohistochemistry (IHC) testing for key biomarkers, further expanding its oncology testing portfolio. The new IHC suite is designed to identify tumor subtypes and guide targeted therapy selection, complementing the existing Guardant360 Tissue multiomic profiling test.
Guardant Health has also introduced the Guardant Hereditary Cancer test, a blood-based germline panel that identifies genetic variants increasing cancer risk. This test is particularly beneficial for patients with a personal or family history of hereditary cancer, providing insights for treatment decisions and risk assessment. On the financial front, Scotiabank (TSX:BNS) has increased Guardant Health’s stock target to $57, citing strong first-quarter revenue and enhanced full-year guidance. Canaccord Genuity has also raised its target to $65, maintaining a Buy rating due to the company’s robust earnings and test volume growth.
These analyst updates reflect optimism about Guardant Health’s potential for significant growth, driven by product enhancements and strategic initiatives. The company’s focus on improving its product offerings and expanding indications is expected to contribute to its continued success. Despite near-term cash burn, analysts believe the company’s stock remains undervalued, with its contributions to oncology diagnostics not yet fully recognized by the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.