Buy Rating Affirmed for Exact Sciences on Promising Multi-Cancer Detection Technology

Leerink Partners analyst Puneet Souda has maintained their bullish stance on EXAS stock, giving a Buy rating on April 3.

Puneet Souda has given his Buy rating due to a combination of factors surrounding Exact Sciences’ (EXAS) promising developments in multi-cancer early detection (MCED). Souda’s optimism is partly based on the company’s presentation of ASCEND-2 data at the American Association for Cancer Research (AACR), which demonstrated a substantial sensitivity rate across various types of cancer using a cost-effective two biomarker class algorithm. This technology, TELQAS, is based on PCR and is significantly less expensive compared to Next-Generation Sequencing (NGS) approaches used by competitors, offering a potential advantage in the market.

Furthermore, the study’s performance in detecting cancers with low five-year survival rates, such as pancreatic and liver cancer, was particularly notable. Souda recognizes the challenges in the liquid biopsy space, as seen in other studies, but sees the consistent performance of EXAS’s assay on larger patient groups as a positive sign. Despite the current lack of a clear reimbursement pathway for MCED assays, which could affect the initiation of the large-scale SOAR trial, Souda’s rating reflects confidence in the company’s technology and its potential to establish a new standard in cancer screening, pending more favorable regulatory conditions.

In another report released on April 3, Evercore ISI also maintained a Buy rating on the stock with a $90.00 price target.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EXAS in relation to earlier this year.

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Exact Sciences (EXAS) Company Description:

Founded in 1995, Wisconsin-based Exact Sciences Corp. is a molecular diagnostics company, which focuses on the early detection and prevention of colorectal cancer.