Market Overview

Exact Sciences A 'Must-Own' Growth Stock, Goldman Sachs Says In Upgrade

Share:
Exact Sciences A 'Must-Own' Growth Stock, Goldman Sachs Says In Upgrade

Shares of EXACT Sciences Corporation (NASDAQ: EXAS), which markets the non-invasive colon cancer screener Cologuard, enjoy a premium valuation and hold further upside potential, according to Goldman Sachs.

The Analyst

Analyst Patrick Donnelly upgraded Exact Sciences from Neutral To Buy and increased the price target from $85 to $120.

The Thesis

The momentum in the commercial ramp of Cologuard justifies a premium valuation, and the combination of Cologuard catalysts and new product rollouts support appreciation from current levels — even after the 75 percent gain Exact Sciences' shares have notched since the beginning of 2018, Donnelly said in the Tuesday upgrade note. 

Cologuard's large addressable market, visibility into pricing and reimbursement and lack of near-term competitive threats provide a relatively stable backdrop, the analyst said. 

The market has yet to fully appreciate a series of updates over the course of 2018, Donnelly said. This is likely to extend the runway for "best-in-class" growth, he said. 

Investors have not attached any valuation to Exact Sciences' new products, and are looking at these, as well as product improvements, to mitigate an eventual moderation in top-line growth from Cologuard, the analyst said. 

"We view EXAS as a must-own growth stock given the clean runway forward that is largely in its control with potential for discovery value in the pipeline outside of Cologuard." 

Goldman sees the Exact Sciences story as a strengthening one, with the stock poised for outperformance going forward.

The Price Action

Exact Sciences shares were up 0.12 percent at $91.87 at the time of publication Tuesday. 

Related Links:

The Week Ahead In Biotech: Conferences, PDUFA Dates, Clinical Trials, Earnings, IPOs

Zynerba's Patent Win Sends Cannabis Biotech's Shares Higher

Photo courtesy of Exact Sciences. 

Latest Ratings for EXAS

DateFirmActionFromTo
Jan 2020CitigroupInitiates Coverage OnBuy
Nov 2019Stifel NicolausInitiates Coverage OnBuy
Oct 2019Canaccord GenuityMaintainsBuy

View More Analyst Ratings for EXAS
View the Latest Analyst Ratings

 

Related Articles (EXAS)

View Comments and Join the Discussion!

Posted-In: Goldman Sachs Patrick DonnellyAnalyst Color Upgrades Health Care Price Target Analyst Ratings General Best of Benzinga

Latest Ratings

StockFirmActionPT
QEPPiper SandlerDowngrades1.0
HEIJefferiesDowngrades85.0
MKCCFRAMaintains140.0
CAGCFRAReiterates35.0
CALMStephens & Co.Reiterates55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com