Canaccord Boosts Price Target For Exact Sciences Corporation Following Positive Coverage Decision By Anthem
In a research report published Friday, Canaccord Genuity analyst Mark Massaro reiterated a Buy rating on EXACT Sciences Corporation (NASDAQ:EXAS) and raised the price target to $30 (from $27), following Anthem’s recent decision to cover Cologuard, the company’s FDA approved stool based colon cancer screening test, which the analyst believes to be a big development for the company and a positive surprise to the market.
Massaro noted, “We spoke with management this morning, which confirmed that the updated bulletin indicates Anthem has provided a positive coverage decision for Cologuard; however at this time, the coverage is on an outof-network basis. We interpret this to mean that Anthem will pay for the test at some outof-network rate (%) for now; however, we think given the positive coverage decision, an innetwork rate is likely to come soon.”
Furthermore, “The company is now working to bring Cologuard in-network, and consistent with our model, we believe EXAS is likely to negotiate a rate above the Medicare rate. Our model assumes commercial payor rates gradually step up above Medicare’s rate of $492.76 and could reach as high as $530 by the end of 2017.”
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 -6.0% and a 43.2% success rate. Massaro has a -5.6% average return when recommending EXAS, and is ranked #3250 out of 3505 analysts.