TD Cowen analyst Daniel Brennan has reiterated their bullish stance on EXAS stock, giving a Buy rating yesterday.
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Daniel Brennan has given his Buy rating due to a combination of factors that highlight Exact Sciences’ strong performance and promising outlook. The company reported a robust third quarter, with significant growth in Cologuard volumes and sales, marking the highest quarterly growth in nearly three years. This growth was driven by various factors, including increased sales force productivity, the Care Gap program, and the introduction of Cologuard Plus. Additionally, Exact Sciences exceeded expectations in EBITDA margins and free cash flow, prompting an increase in the price target to $90.
Furthermore, the company’s core performance remains solid, with expectations for continued growth supported by strategic investments in sales and marketing, as well as research and development. The pipeline, particularly the Cancerguard MCED test, adds to the positive outlook, despite not being fully valued yet. The overall diagnostics sector has seen a re-rating, and Exact Sciences’ valuation remains attractive. With ongoing momentum in Cologuard growth and margin improvements, the long-term investment thesis for Exact Sciences appears favorable.
According to TipRanks, Brennan is a 5-star analyst with an average return of 21.9% and a 57.81% success rate. Brennan covers the Healthcare sector, focusing on stocks such as Bruker, Exact Sciences, and Natera.