A key factor in CFRA's upgraded rating is the U.S. Food and Drug Administration's approval of Exact Sciences (NASDAQ:EXAS)' Cologuard Plus in October. This enhanced colorectal cancer test is considered a significant improvement over the existing Cologuard test, offering increased sensitivity and specificity, as well as a considerable reduction in false negatives.The analyst notes that Cologuard Plus not only comes with a higher selling price but also a lower cost per unit.
This is expected to have a positive impact on the company's revenue and contribute to margin expansion over the long term. The new product's potential to drive top-line growth and improve profitability underpins CFRA's optimistic stance on Exact Sciences' stock, which according to InvestingPro's Fair Value analysis, is currently trading near its fair value.
A key factor in CFRA's upgraded rating is the U.S. Food and Drug Administration's approval of Exact Sciences' Cologuard Plus in October. This enhanced colorectal cancer test is considered a significant improvement over the existing Cologuard test, offering increased sensitivity and specificity, as well as a considerable reduction in false negatives.The analyst notes that Cologuard Plus not only comes with a higher selling price but also a lower cost per unit.
A key factor in CFRA's upgraded rating is the U.S. Food and Drug Administration's approval of Exact Sciences' Cologuard Plus in October. This enhanced colorectal cancer test is considered a significant improvement over the existing Cologuard test, offering increased sensitivity and specificity, as well as a considerable reduction in false negatives.The analyst notes that Cologuard Plus not only comes with a higher selling price but also a lower cost per unit.
In other recent news, Exact Sciences has seen significant developments, particularly in the pricing of its Cologuard Plus test. The Centers for Medicare & Medicaid Services (CMS) have increased the Clinical Laboratory Fee Schedule rates for the test to approximately $592, marking a 16% increase over the original Cologuard test's price. Analyst firms such as BTIG, TD (TSX:TD) Cowen, Piper Sandler, Leerink Partners, Bernstein SocGen Group, Stifel, and Wolfe Research have responded positively to this development, maintaining their positive ratings and price targets for Exact Sciences.
The company's Q3 2024 earnings revealed a 13% year-over-year revenue increase, reaching $709 million, and a substantial 75% increase in adjusted EBITDA to $99 million. The company has revised its full-year revenue guidance to between $2.73 billion and $2.75 billion, with adjusted EBITDA expected to be between $310 million and $320 million.
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