In a research report published Monday, Canaccord analyst Mark Massaro maintained a Buy rating on shares of Exact Sciences Corporation (NASDAQ:EXAS) with a price target of $26, which represents a potential upside of 32% from where the stock is currently trading. The new price target reflects the recent dilution of the large secondary offering.
Massaro wrote, “Exact Sciences recently netted $174M (7M shares at $25.50) in a secondary offering. While the size and timing of the deal surprised us, management highlighted the importance of raising money while the markets are open and on favorable terms (bought deal). Given recent volatility in the markets the last couple of weeks, this strategy has proven to be sensible, in our opinion. EXAS fortified its balance sheet to execute on sales and marketing and develop its test pipeline for the early detection of lung, pancreatic, and esophageal cancers.”
“We’re pleased with the company’s execution in the field and are encouraged at the rate of physician adoption at this early stage of launch. We continue to assign an 80% probability of a positive outcome from the USPSTF (A or B rating), which we expect any day and likely by October. We think EXAS can help reduce colon cancer mortality over the next several years given the benefits of Cologuard,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Massaro has a total average return of -9.4% and a 33.0% success rate. Massaro has a -18.0% average return when recommending EXAS, and is ranked #3627 out of 3737 analysts.
Out of the 11 analysts polled by TipRanks, 6 rate Exact Sciences Corp stock a Buy, 4 rate the stock a Hold and 1 recommends to Sell. With a return potential of 38.5%, the stock’s consensus target price stands at $27.20.