Analyst Sean Lavin of BTIG was encouraged with EXACT Sciences Corporations (NASDAQ:EXAS) latest earnings report. EXACT’s second quarter saw an increase in the number of ordering docs, improvement in GM reflecting favorable timing on manufacturing investments and the kick off of its DTC campaign. EXACT continues to see an increase in reorder rates from this campaign, which is a good indication for future growth.
Lavin doesn’t view these Q2 earnings as a vital part of EXACT’s “overall story” until routine reimbursement. He adds that he thinks the ramp of commercial coverage is most important to adoption and achieving routine reimbursement will take a little time. Nonetheless, he is “encouraged by solid adoption and especially expense management.”
During the earnings call management confirmed another payor coverage decision with Wellmark and that other discussions with payors are encouraging. The analyst expects to see benefit from these conversations within the next 12-18 months. Lavin increased his FY16 estimates and now expects 240k completed tests with revenues of $93 million.
The analyst maintained his Buy rating with a price target of $20, marking a 24% increase from current levels.
According to TipRanks, the analyst has a yearly average return of 16% and a 68% success rate. The analyst has a 129% average return when recommending EXACT, and is ranked #67 out of 4,083 analysts.
TipRanks shows that out of the 9 analysts who rated EXACT in the last 3 months, 66.7% gave a Buy rating and 33.3% gave a Hold rating. The average 12-month price target for the stock is $12.57, marking a 22.46% downside from current levels.