Craig-Hallum would be buyers of Exact Sciences amid weakness

Craig-Hallum notes that Exact Sciences (EXAS) shares are currently bid down after an FDA panel on Guardant Health’s (GH) Shield blood-based colorectal cancer screening test voted that the test is safe and effective and that the benefits outweigh the risks, noting that the “market appears to assume that Shield will be approved as a primary screening,” putting Exact’s Cologuard franchise at risk over time. However, the firm would be buyers today as it argues that it will likely be years before a blood-based test gains traction in the market and contends that screening “is not a zero-sum game.” Exact will have its own blood-based test that could be quite competitive, adds the analyst, who has a Buy rating and $82 price target on Exact Sciences shares.