Veracyte, Inc (VCYT) PT Lowered to $35 at Needham & Company

Needham & Company analyst Mike Matson lowered the price target on Veracyte, Inc (NASDAQ: VCYT) to $35.00 (from $55.00) while maintaining a Buy rating.

The analyst commented, "VCYT's 4Q21 revenue and EPS beat consensus. Organic revenue growth (excluding estimated revenue from Decipher and HalioDx and a $4M milestone payment) slowed to 5% in 4Q21 from 14% in 3Q21 as VCYT lapped the test volume recovery in 4Q20 and COVID hurt testing volumes in 4Q21. Management issued 2022 revenue guidance that bracketed consensus. Adjusted gross margin was down 160 bps Y/Y while operating margin was up 950 bps Y/Y. We believe that VCYT has a long runway of strong growth and is positioned to become one of the leaders in cancer diagnostics, and we reiterate our Buy rating though we have lowered our price target to $35 from $55 due to peer multiple compression."

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