Kyle Mikson CFA, an analyst from Canaccord Genuity, maintained the Buy rating on Guardant Health (GH – Research Report). The associated price target remains the same with $30.00.
Kyle Mikson CFA has given his Buy rating due to a combination of factors including Guardant Health’s strong first-quarter performance, which surpassed both his own and the consensus estimates, and the company’s upward revision of its operating plan and revenue guidance. The substantial growth in clinical and biopharma test volumes contributed to this robust performance, alongside the Medicare price increase for the Guardant360 LDT, which rose to $5,000 from $3,500. Additionally, the delay in the Advisory Committee meeting for the Shield blood test resulted in a decreased estimated cash burn for 2024, further bolstering the company’s financial outlook.
The revision of the revenue forecast to a higher range reflects the positive impact of commercial reimbursement and the increased average selling price of Guardant360. Moreover, the company’s therapy selection business, which reached cash flow breakeven in 2023, continues to generate positive cash flow, indicating solid underlying business momentum. While recognizing significant near-term cash burn, Mikson maintains that the stock remains undervalued given Guardant Health’s established business and its promising advancements in minimal residual disease and screening. He believes that the company’s long-term growth potential in diagnostics is not yet fully reflected in its stock price, and anticipates that upcoming milestones such as FDA approval of Shield could serve as significant catalysts for value appreciation.
In another report released today, Piper Sandler also assigned a Buy rating to the stock with a $30.00 price target.
GH’s price has also changed slightly for the past six months – from $21.580 to $22.370, which is a 3.66% increase.
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Guardant Health (GH) Company Description:
Guardant Health, Inc. is a precision oncology company, which engages in provision of precision oncology testing and development services. It focuses performing blood tests, vast data sets, and advanced analytics to conquer cancer. The company was founded by Helmy Eltoukhy and AmirAli H. Talasaz in 2012 and is headquartered in Redwood City, CA.
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