EXACT Sciences Corporation (NASDAQ:EXAS) shares rose over 10% in Wednesday’s trading session, following the news that the United Healthcare issued an updated preventative care services bulletin that has included Exact’s Cologuard test to its colorectal cancer screening covered services.

In reaction, Roth Capital analyst Chris Lewis reiterates a Buy rating on EXAS, while raising the price target to $40.00 (from $33.00), which represents a potential upside of 11% from where the stock is currently trading.

Lewis commented, “We see this as a significant win for Exact as United Healthcare is the nation’s largest commercial insurer and had been the lone large U.S. commercial insurer (of the top five) not providing coverage for Cologuard.  We have raised our 2018 revenue projection to $301.9MM, from $288.0MM, on the increased commercial covered lives.”

“We estimate UNH covers ~30MM commercial lives in the U.S., making it the largest commercial insurer in the country. As of last update, Cologuard’s coverage in the U.S. sat at ~197MM covered lives, representing ~78% of Cologuard’s addressable market. While it can typically take ~9-12 months for a coverage decision to materialize into a contracted in-network service, given UNH’s size, we expect the positive development should significantly expand Cologuard’s addressable market opportunity over time. Thus, we see the UNH news as a positive development that should support Exact’s continued strong adoption and utilization trends, and likely provide upside to expectations over the medium to long term,” the analyst continued.

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 5.6% and a 49% success rate. Lewis is ranked #870 out of 4569 analysts.

As of this writing, all the 8 analysts polled by TipRanks (in the past 3 months) rate Exact Sciences stock a Buy. With a potential upside of nearly 12%, the stock’s consensus target price stands at $40.43.