Stifel maintains Buy on EXAS, reiterates $67 price target

Published 20/02/2025, 16:34
Stifel maintains Buy on EXAS, reiterates $67 price target

On Thursday, Stifel analysts upheld their Buy rating and $67.00 price target for Exact Sciences (NASDAQ:EXAS) shares, representing a potential 39% upside from the current price of $48.10. According to InvestingPro data, analyst targets range from $61 to $95, with the stock currently trading near its 52-week low. Stifel’s analysis acknowledges that Exact Sciences’ fourth-quarter revenues met the previously announced figures and that the company’s guidance for the year aligns with management’s expectations, as communicated at the year-end and the J.P. Morgan Healthcare Conference.

The company’s projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year is anticipated to be $16 million below the consensus at the midpoint. This forecast has likely led to a slight decline in the stock price, though the company maintains strong fundamentals with a current ratio of 3.25 and revenue growth of 10.37% in the last twelve months. Despite this, the overall outlook for Exact Sciences remains unchanged from the evaluation at the J.P. Morgan event.Get deeper insights into Exact Sciences’ financial health and access exclusive analysis with InvestingPro, which offers additional ProTips and comprehensive metrics for informed investment decisions.

Stifel anticipates 2025 to be a year of growth acceleration for Exact Sciences, with the launch of new products such as Cologuard Plus and Oncodetect, and significant developments expected from their blood assay. This assay is set to influence the competitive landscape in the latter half of the year, with analysts projecting 10% revenue growth for FY2025.

The analysts see the potential for mid-teens growth in Cologuard usage, particularly through increased rescreening rates. The current assumption is that rescreening rates will mirror those of 2024, but there is optimism that these rates could rise, presenting an opportunity for further growth.

In other recent news, Exact Sciences reported better-than-expected fourth-quarter results, with adjusted earnings per share of -$0.06, surpassing analyst estimates of -$0.33. The company’s revenue reached $713.4 million, exceeding the consensus forecast of $694.92 million, marking a 10% year-over-year increase. Exact Sciences also announced plans to launch three new cancer tests in 2025, including Cologuard Plus, Oncodetect, and Cancerguard. Despite these positive figures, the company’s 2025 revenue guidance of $3.025-$3.085 billion was in line with expectations but not as robust as some investors hoped.

BTIG analyst Mark Massaro adjusted the price target for Exact Sciences to $65 from $75, maintaining a Buy rating, while noting a slight revenue beat for the fourth quarter. The company’s screening and precision oncology segments experienced year-over-year growth of 13% and 4%, respectively, in 2024. TD Cowen reiterated a Buy rating with an $86 price target, citing confidence in Exact Sciences’ conservative guidance and potential sales and EBITDA growth driven by factors like an expanded salesforce and new products.

Barclays (LON:BARC) initiated coverage on Exact Sciences with an Overweight rating and a $70 price target, highlighting the company’s strong position and attractive valuations. The firm noted that Exact Sciences has a consistent track record of execution and is well-positioned to meet its targets despite competitive pressures. These developments reflect a varied but generally positive outlook from analysts on Exact Sciences’ future performance.

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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