Wedbush Securities Reiterates Neutral, Lowers Price Target On EXACT Sciences On 4Q14 Recap

In a report published Wednesday, Wedbush Securities analyst Zarak Khurshid reiterated a Neutral rating on

, but lowered the price target from $19.00 to $18.00. In the report, Wedbush Securities noted, "Maintaining NEUTRAL. Lowering PT from $19 to $18 on lower salesforce productivity and longer path to profitability. We are lowering our price target from $19 to $18 which is still based on a 2018E EV/sales basis (assuming ~5.5x vs 6x prior) and discount rate of 20%. We still believe our multiple is fair given the stellar regulatory & CMS progress, massive colorectal cancer opportunity, minimal competitive threats and strength of management. Based on our 2016E sales estimate of $148 MM, shares of EXAS are trading at an EV/sales multiple of ~15x, a premium to the group median of 3.2x." EXACT Sciences closed on Tuesday at $22.90.