Canaccord Genuity Reiterates Buy on Exact Sciences (EXAS) Following USPSTF's Draft Recommendation for Colorectal Screening Guidelines

Canaccord Genuity reiterated a Buy rating and $26.00 price target on Exact Sciences (NASDAQ: EXAS) following USPSTF's draft recommendation for colorectal screening guidelines. the report surprisingly did not include Cologuard as an "A" or "B" rated test, though it did mention it as an "alternative screening test" which EXAS interprets as being included in the guidelines.

Analyst Mark Massaro commented, "After the close, the USPSTF issued its draft recommendation for colorectal screening guidelines and surprisingly did not include Cologuard as an "A" or "B" rated test, though did mention it as an "alternative screening test" which EXAS interprets as being included in the guidelines. Our view is that the proposed guidelines are not favorable to EXAS, though we think EXAS will deploy any and all resources possible to influence the Task Force in the 30-day public comment period to "optimize" Cologuard's position in the guidelines. With the stock set to open down 45% (traded to ~$10 after hours), the stock is set to price in a lack of inclusion; but, in our view, the unclear language on an "alternative screening test" and the likelihood of intense lobbying pressure from multiple stakeholders in our mind may land Cologuard into the final USPSTF guidelines after all. We expect volatility, but reiterate our BUY rating."

For an analyst ratings summary and ratings history on Exact Sciences click here. For more ratings news on Exact Sciences click here.

Shares of Exact Sciences closed at $18.53 yesterday.

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