Exact Sciences (EXAS) PT Lowered to $85 at Canaccord Genuity

Canaccord Genuity analyst Kyle Mikson lowered the price target on Exact Sciences (NASDAQ: EXAS) to $85.00 (from $90.00) while maintaining a Buy rating.

The analyst commented: "We reiterate our BUY rating on Exact Sciences (EXAS) shares and decrease our price target to $85 from $90. We remain bullish, although we reduce our price target to reflect a modestly more cautious setup going forward as recent commercial investments have yet to make a meaningful impact on revenue. After the market close on Wednesday, May 8, the company reported 1Q24 results that were ahead of our estimates and FactSet consensus. Although the results reflect only 6% y/y top-line growth, the company faced a challenging comparison to the strong year-earlier period. Importantly, EXAS provided 2Q24 revenue guidance that was a touch lower than Street estimates and reaffirmed its 2024 guidance. Notably, the annual outlook assumes recent sales and marketing investments pay tangible dividends in 2H24. The shares traded about 20% lower in the after hours on 5/8, presumably due to doubt in the organic growth potential of Cologuard. We think concerns are overblown, as commercial investments are a common source of test volume growth. The shares appear attractive, as they offer over 40% upside potential to our revised price target."

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