Analyst Matthew Sykes from Goldman Sachs maintained a Buy rating on Guardant Health (GH – Research Report) and keeping the price target at $28.00.
Matthew Sykes has given his Buy rating due to a combination of factors including Guardant Health’s robust first-quarter performance and upward revisions for the full year. Guardant Health outperformed expectations with a 31% revenue growth, which was substantially higher than the consensus estimates. The company’s gross profit also exceeded the consensus, evidencing strong financial health. Furthermore, the company’s upward revision of its 2024 revenue guidance, alongside expected improvements in non-GAAP gross margin, signifies a positive outlook on its business trajectory.
Sykes’s optimism is further bolstered by improvements in average selling prices (ASPs) due to better commercial payer coverage and a strong biopharma volume growth. The successful increase in ASPs, particularly for the Guardant360 product, reflects the company’s ability to secure higher reimbursement rates, which is a key driver of revenue sustainability. The anticipation surrounding the upcoming AdCom meeting for Guardant’s Shield IVD and the reduced cash burn from screening activities are additional factors that contribute to the positive recommendation, as they represent future growth catalysts and operational efficiency improvements, respectively.
According to TipRanks, Sykes is an analyst with an average return of -0.8% and a 51.16% success rate. Sykes covers the Healthcare sector, focusing on stocks such as Pacific Biosciences, Natera, and Exact Sciences.
In another report released yesterday, Piper Sandler also assigned a Buy rating to the stock with a $30.00 price target.
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Guardant Health (GH) Company Description:
Guardant Health, Inc. is a precision oncology company, which engages in provision of precision oncology testing and development services. It focuses performing blood tests, vast data sets, and advanced analytics to conquer cancer. The company was founded by Helmy Eltoukhy and AmirAli H. Talasaz in 2012 and is headquartered in Redwood City, CA.
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