Leerink Partners analyst Puneet Souda has maintained their bullish stance on GH stock, giving a Buy rating on January 9.
Puneet Souda has given Guardant Health a Buy rating due to a combination of factors including a robust quarterly performance and promising developments on the regulatory front. In the recent quarter, Guardant Health surpassed expectations with revenues between $153M-$154M, indicating a 21% year-over-year increase, which outperformed both Leerink Partners’ and consensus estimates. This growth was powered by a surge in volume across clinical and biopharma customers, and a strong average selling price (ASP) for its G360 tests. Furthermore, Gh’s fiscal year cash burn was marginally better than anticipated, and the company concluded the year with a solid $1.2 billion in cash reserves, suggesting financial stability and a positive outlook for the company’s ongoing operations.
In addition to the financials, advancements in Guardant Health’s product pipeline also justify the Buy rating. Specifically, the Shield CRC screening test is on track for an FDA approval and launch in 2024, with high compliance rates bolstering management’s confidence in the product’s future success. The upcoming FDA Advisory Committee meeting is a critical step towards this goal. Moreover, the focus on improving reimbursement trends for key products such as G360 and Reveal, along with management’s projection of reaching breakeven for Tx selection by the end of 2023, supports the company’s potential for sustainable growth moving forward. These elements collectively underpin Souda’s positive stance on Guardant Health’s stock.
Souda covers the Healthcare sector, focusing on stocks such as Illumina, Exact Sciences, and Natera. According to TipRanks, Souda has an average return of -6.6% and a 40.94% success rate on recommended stocks.
In another report released on January 9, Craig-Hallum also maintained a Buy rating on the stock with a $54.00 price target.
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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.
Read More on GH:
- Guardant Health price target lowered to $54 from $64 at Craig-Hallum
- Guardant Health’s preliminary Q4 results well ahead of consensus, says Canaccord
- Guardant Health sees FY23 revenue $562M-$563M, consensus $555.18M
- Guardant Health reports preliminary Q4 revenue $153M-$154M, consensus $146.34M
- Guardant, Hikma team on cancer screening and genomic profiling tests in MENA
