Needham analyst Michael Matson maintained a Buy rating on Veracyte (VCYT – Research Report) today and set a price target of $30.00.
Michael Matson’s Buy rating for Veracyte’s stock is based on the company’s recent financial performance and strategic acquisitions. Veracyte’s fourth quarter revenue of 2023 surpassing consensus expectations, along with their initial revenue guidance for 2024 that also exceeds the consensus, paints a picture of a company on a robust growth trajectory. Moreover, the acquisition of C2i Genomics by Veracyte, valued at $70 million in stock with the potential for additional milestone payments, is viewed as a strategic positive.
The C2i Genomics acquisition is particularly noteworthy as it brings a unique liquid biopsy minimal residual disease (MRD) test to Veracyte’s portfolio, which Matson believes has significant market potential in a substantially large and underpenetrated MRD market, estimated to be around $15 billion. Furthermore, Veracyte’s ability to leverage its existing sales channels to sell this new test is expected to facilitate efficient market penetration and contribute to the company’s financial growth, supporting the Buy rating.
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Veracyte (VCYT) Company Description:
Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.
