Interactive Brokers shares jump as it secures spot in S&P 500
The analysts expect new tests to provide momentum for Veracyte, compensating for the anticipated plateau in growth of its Decipher test. This is seen as a maturing product within the company’s portfolio. The company maintains a healthy gross profit margin of 69.82%, and seven analysts have recently revised their earnings estimates upward. Furthermore, the consensus revenue estimate for 2025, which implies a 10% growth rate, is viewed as conservative by the analysts. They anticipate a meaningful upside for Veracyte this year, based on the company’s performance. The analysts pointed to Veracyte’s promising pipeline of products, including international kitted tests, a minimal residual disease (MRD) test, and the Percepta Nasal Swab test, as key growth drivers for the company.
The total addressable market for Veracyte’s primary tests and its pipeline is estimated to be greater than $50 billion. With a current market capitalization of $3.38 billion and strong revenue growth of 23.95% over the last twelve months, Veracyte has demonstrated a consistent ability to commercialize high-quality and clinically useful tests. InvestingPro subscribers can access 15+ additional insights about Veracyte’s growth potential and financial health metrics.
The analysts expect new tests to provide momentum for Veracyte, compensating for the anticipated plateau in growth of its Decipher test. This is seen as a maturing product within the company’s portfolio. The company maintains a healthy gross profit margin of 69.82%, and seven analysts have recently revised their earnings estimates upward. Furthermore, the consensus revenue estimate for 2025, which implies a 10% growth rate, is viewed as conservative by the analysts. They anticipate a meaningful upside for Veracyte this year, based on the company’s performance.
In their valuation, Needham analysts have shifted to base their price target on their 2026 sales estimate for Veracyte, which has led to the increased price target. The adjustment reflects their confidence in the company’s future revenue growth and the successful commercialization of its product pipeline.
In other recent news, Veracyte Inc (NASDAQ:VCYT). has been the subject of investor attention due to various developments. The diagnostics company posted record revenues of $115.9 million in Q3 2024, marking a significant 29% increase from the previous year. This was driven by a strong performance in its testing business, including its Decipher and Afirma tests. The company also raised its total revenue guidance for 2024, reflecting confidence in continued growth and market expansion plans.
Goldman Sachs recently adjusted its stance on Veracyte, shifting the rating from Buy to Neutral and slightly decreasing the price target to $37 from the previous $38. The downgrade was attributed to a possible deceleration in Afrima growth in 2025 due to high market penetration levels. However, Decipher Prostate is expected to remain a significant contributor to the company’s revenue in the coming year.
On the other hand, Wolfe Research initiated coverage on Veracyte with an Outperform rating and a price target of $50.00. The firm highlighted Veracyte’s significant revenue growth and gross margin expansion since 2021, and expects EBITDA margins to approach 30% over the next five years. These recent developments point to Veracyte’s continued growth trajectory and market expansion in the diagnostic testing industry.
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