JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Thursday, TD Cowen maintained a bullish stance on Exact Sciences (NASDAQ:EXAS), reiterating a Buy rating and an $86.00 price target for the company’s shares. Currently trading at $47.08, InvestingPro data shows analyst targets ranging from $61 to $95, suggesting significant upside potential. The firm’s analyst, Dan Brennan, expressed confidence in the company’s conservative guidance and identified multiple factors that could drive sales and EBITDA higher than anticipated.
Exact Sciences, known for its Cologuard cancer screening test, provided a sales guidance for the first quarter that fell below consensus, attributing the shortfall to seasonal trends and CareGap factors. The company has demonstrated solid performance with revenue growth of 10.4% in the last twelve months, reaching $2.76 billion. For the year 2025, the company’s sales are expected to bracket consensus, with EBITDA projections slightly below at 3%. Brennan views this guidance as conservative and anticipates that several tailwinds, such as the Cologuard Plus price, an expanded salesforce, and the introduction of new products, could contribute to more than 3% of sales upside and even greater EBITDA growth.
TD Cowen’s conviction in Exact Sciences as a top pick is based on the continued momentum of Cologuard in 2025, the company’s operational leverage, and the anticipated impact of compelling Cologuard blood test data expected to be released mid-year. The analyst remains optimistic about the company’s growth trajectory and potential, particularly with new products that could offer additional upside in 2025.
Despite the conservative guidance for the near term, Brennan’s analysis suggests that Exact Sciences is well-positioned for growth. The company’s focus on driving sales, expanding its product offerings, and leveraging its operating capabilities are key elements underpinning TD Cowen’s positive outlook.
In summary, TD Cowen’s analysis underscores a belief in the strength of Exact Sciences’ business model and strategy. With the company poised to outperform its conservative estimates, the firm’s reiterated Buy rating and $86.00 price target reflect confidence in Exact Sciences’ future performance. InvestingPro analysis reveals a "GOOD" overall Financial Health score, with particularly strong liquidity metrics showing current assets exceed short-term obligations by 3.25x. For deeper insights into Exact Sciences’ financial health and growth potential, including additional ProTips and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Exact Sciences reported a strong fourth quarter with adjusted earnings per share of -$0.06, surpassing analyst estimates of -$0.33. Revenue for the quarter reached $713.4 million, exceeding the forecast of $694.92 million and marking a 10% year-over-year increase. The company also announced a 10% rise in annual revenue to approximately $2.75 billion for 2024, alongside $323 million in adjusted EBITDA. Despite these positive results, Exact Sciences’ first-quarter guidance for 2025 was lower than expected due to seasonal trends. Barclays (LON:BARC) initiated coverage on the company with an Overweight rating and a price target of $70, citing strong fundamentals and attractive valuations. BTIG adjusted the stock’s price target to $65 from $75 but maintained a Buy rating, highlighting a slight revenue beat for Q4. Exact Sciences plans to launch three new cancer tests in 2025, including Cologuard Plus and Oncodetect MRD. The Oncodetect MRD test, set for a Q2 2025 launch, showed promising clinical validation data, indicating strong associations with cancer recurrence.
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