Analysts Raise Price Targets For Two Earnings Winners: EXACT Sciences Corporation (EXAS), Paypal Holdings Inc (PYPL)


Earnings season continued to have an impact on individual stocks, and EXACT Sciences Corporation (NASDAQ:EXAS) and Paypal Holdings Inc (NASDAQ:PYPL) were among the stock winners today. With positive momentum and a strong start to 2017, analysts raise their price targets for the diagnostic test maker and online payments giant. Let’s take a closer look.

EXACT Sciences Corporation

EXACT Sciences shares are on the rise today, up over 25%, after the molecular diagnostics firm posted solid first-quarter results, with volumes, ASPs, revenues, and gross margins all exceeding expectations.

EXAS reported a loss of 32 cents a share, beating forecasts for a loss of 41 cents, on sales of $48.4 million, ahead of estimates for $37.29 million. In addition, the company raised 2017 guidance now calling for revenues of $195-205 million, from $170-180 million.

In reaction, Roth Capital analyst Chris Lewis reiterated a Buy rating on shares of Exact Sciences, while raising the price target to $33 (from $26), which implies an upside of 10% from current levels.

Lewis commented, “EXAS raised its 2017 revenue and volume outlooks, which we feel could still prove conservative. With USPSTF inclusion driving expanding reimbursement coverage (importantly at favorable pricing), quality metrics inclusion driving physician adoption, and continued effective DTC initiatives, we believe EXAS is well-positioned to sustain strong commercial momentum.”

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 6.8% and a 53% success rate. Lewis is ranked #702 out of 4571 analysts.

Paypal Holdings Inc

Paypal shares climbed nearly 7% today, after the digital payments leader reported strong first-quarter results ahead of consensus estimates and raised its full year guidance. The outperformance was driven by robust growth in TPV and strength in key metrics.

Reacting was Oppenheimer analyst Glenn Greene, which reiterated an Outperform rating on PYPL, with a price target of $50, which implies an upside of 5% from current levels.

Greene commented, “We are encouraged by another strong quarter of TPV/revenue growth. PYPL appears confident it can offset “customer choice” margin headwinds in FY17 with leverage on other expenses […] Trading at 21x our adjusted FY18E EPS, shares remain attractive.”

“We raise our FY17/18 EPS estimates to $1.77/2.09 from $1.73/2.03, respectively. Our FY17 estimate reflects 16% revenue growth (+18% in CC) to $12.6B and 30bps of operating margin expansion. Our FY18 estimate assumes 17% revenue growth to $14.7B and flattish operating margins (~20.4%), directionally consistent with PYPL’s three-year outlook,” the analyst added.

According to TipRanks.com, analyst Glenn Greene has a yearly average return of 18% and a 82% success rate. Greene has a 13% average return when recommending PYPL, and is ranked #8 out of 4571 analysts.

Out of the 15 analysts polled by TipRanks (in the past 3 months), 13 rate Paypal stock a Buy, while 2 rate the stock a Hold. With a return potential of 12%, the stock’s consensus target price stands at $49.64.