UPDATE: Wedbush Reiterates Neutral Rating, Raises PT on EXACT Sciences Corporation Following Favorable CMS Coverage and Pricing

In a report published Monday, Wedbush analyst Zarak Khurshid reiterated a Neutral rating on EXACT Sciences Corporation (NASDAQ: EXAS), and raised the price target from $14.00 to $19.00.In the report, Wedbush noted, “Exact Sciences is a pure-play molecular diagnostic company pioneering a game-changing stool-based test for the early detection of colorectal cancer. The test, called Cologuard, was submitted to the FDA for PMA approval on June 10, 2013. Following a successful FDA panel meeting (11-0 vote) on 3/26 and FDA facility inspection completion as of 7/11/14 the test was approved by the FDA on 8/12/2014. The preliminary CMS coverage and pricing decision was issued on 10/9/14 which outlines $502 in Medicare reimbursement per test. We expect the test to initially be used as an adjunct to colonoscopy and perhaps as a replacement in certain instances. The market potential is large, with a max US testing opportunity of around 19 MM. We remain long-term believers in the technology and management; however the commercial risks are not insignificant and the current valuation is among the highest ever achieved for a pre-revenue diagnostics company. We could become more bullish on shares as a result of better clarity around private payor reimbursement, clinical adoption, payor recognition and/or meaningful pipeline progress.”EXACT Sciences Corporation closed on Friday at $24.60.