In a research report released Friday, Roth Capital analyst Chris Lewis reiterated a Neutral rating on shares of EXACT Sciences Corporation (NASDAQ:EXAS), while raising the price target to $11.00 (from $7.00), following the news that the U.S. Preventive Services Task Force’s (USPSTF) final recommendations for colorectal cancer screening included the company’s non-invasive Cologuard test.
Lewis wrote, “We view this as a positive development for EXAS as it could allow the company to secure more widespread commercial reimbursement coverage in a timelier manner, assuming commercial insurers view the updated recommendation as a mandate to cover all screening strategies presented. That said, it remains unclear if all commercial insurers will view the updated guidelines as a mandate to cover and pay for all the screening strategies presented in the updated USPSTF guidelines, including Cologuard, given there are not specific A/B grade recommendations in the updated recommendation. At minimum, it should accelerate Exact’s coverage discussions with all commercial payors, in our view (46% of Cologuard’s target market is covered by commercial insurance).”
“At this point, we believe the positive USPSTF development has been largely reflected in the stock’s rally since Tuesday’s JAMA article leak (+60% since Monday’s close). As such, we maintain our Neutral rating,” the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Lewis has a yearly average return of 1.1% and a 46% success rate. Lewis has an -56.0% average return when recommending EXAS, and is ranked #1479 out of 3976 analysts.