Wolfe Research lifts Guardant Health to Outperform, sees 30% upside

Investing.com -- Guardant Health shares received a boost after Wolfe Research upgraded the stock to Outperform, setting a $75 price target and calling it “one of the best growth stories in healthcare.”

Wolfe Research said Guardant Health’s recent analyst day reinforced its conviction, with its sum-of-the-parts analysis supporting “30% upside from current levels.”

The firm added: “GH is positioned as one of the best growth stories in healthcare (advanced cancer testing, database value, CRC/MCED). We see upside to near-term expectations.”

The analysts acknowledged they had been cautious over the past year, citing concerns about the growth of the Guardant360 franchise, the market share potential of Reveal, and the financial outlook for Shield.

However, Wolfe Research said its view has shifted. “GH’s market-leading liquid therapy selection product offering got better, the TAM got bigger, tissue-based therapy selection is a source of upside,” the note stated.

On Shield, Wolfe Research noted: “There is clearly a franchise here and P&L strength of the core helps funds Shield.”

While Reveal assumptions have not markedly changed, the analysts pointed out the tissue-agnostic product remains the market leader, with Reveal Ultra in the pipeline.

Guardant Health also updated its long-range plan, raising its 2028 revenue target from $2 billion to $2.2 billion and pulling forward its free cash flow break-even by one year.

Wolfe highlighted that the Shield multi-cancer test will be officially available in October, with new partnerships aimed at reducing ordering friction.

Wolfe Research flagged near-term risks tied to investor expectations for Shield’s long-range plan, but concluded: “Weakness is possible; that is a buying opportunity.”

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