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New Cancer Screening Recommendation Good For Exact Sciences: Canaccord

New Cancer Screening Recommendation Good For Exact Sciences: Canaccord
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Risk-Reward Still Suggests Exact Sciences Is A Buy, But Be Cautious

The 12-page recommendation statement uploaded by the USPSTF [US Preventive Services Task Force] on Tuesday bodes well for EXACT Sciences Corporation (NASDAQ: EXAS), Canaccord Genuity’s Mark Massaro said in a report. He maintained a Buy rating for the company, while raising the price target from $9 to $12.

“In the document, the USPSTF removed the words "recommended" and "alternative" and reiterated that "colorectal cancer screening" is an A rating, and clearly removed any hierarchy of test modalities,” Massaro wrote. He added that this was great news for Exact Sciences and should trigger commercial payor mandates, particularly from United Health and Aetna Inc (NYSE: AET).

Related Link: BTIG On Exact Sciences Leak: Final Task Force Stance Could Lead To Routine Reimbursement More Quickly

Removing Terms

The USPSTF had removed these terms to better communicate that there was convincing evidence that screening for colorectal cancer provides substantial benefit for adults aged 50 to 75 years, and a significant percentage of the eligible US population was not taking advantage of this “effective preventive health strategy,” Massaro mentioned.

Increase Screening

"As such, the screening tests are not presented in any preferred or ranked order; rather, the goal is to maximize the total number of persons who are screened because that will have the largest effect on reducing colorectal cancer deaths,” the analyst quoted the USPSTF as saying.

Latest Ratings for EXAS

Oct 2017Bank of AmericaMaintainsBuy
Oct 2017Canaccord GenuityMaintainsBuy
Sep 2017Leerink SwannMaintainsOutperform

View More Analyst Ratings for EXAS
View the Latest Analyst Ratings

Posted-In: Canaccord Genuity Mark MassaroAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Trading Ideas


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