Veracyte’s Strong Financial Performance and Growth Prospects Justify Buy Rating and Increased Price Target

In a report released today, Michael Matson from Needham maintained a Buy rating on Veracyte, with a price target of $44.00.

Michael Matson has given his Buy rating due to a combination of factors that highlight Veracyte’s strong financial performance and promising growth prospects. The company reported stable revenue growth of 14% in the third quarter of 2025, maintaining this rate despite challenging comparisons from the previous year. This growth was largely driven by robust volumes in their Decipher and Afirma product lines.
Furthermore, Veracyte’s management has raised its revenue and adjusted EBITDA margin guidance for 2025, indicating confidence in continued growth. The company is well-positioned to sustain double-digit growth over the next few years, supported by initiatives like MRD tests for cancer, expansion of kitted tests in Europe, and the Percepta nasal swab test. Additionally, Veracyte’s strong financial health, characterized by having no debt, substantial cash reserves, profitability, and positive cash flow, further supports the Buy rating. As a result, the price target for Veracyte’s stock has been increased from $41 to $44.