Canaccord Slashes Price Target For Exact Sciences Corporation (EXAS) As Risk/Reward Looks Less Compelling
In a research report issued Wednesday, Canaccord analyst Mark Massaro reiterated a Buy rating on shares of Exact Sciences Corporation (NASDAQ:EXAS), while reducing the price target to $13 (from $26), following the news that the USPSTF didn’t include the company’s Cologuard on a draft list of recommended colon cancer screening tests in the U.S.
Massaro noted, “After digesting the Task’s Force surprising recent draft recommendation, it’s clearer to us that the “alternative test” classification in USPSTF’s draft statement is a big setback as we expect it’s very likely to NOT mandate commercial payors to adopt Cologuard given the parameters of the Affordable Care Act (ACA).”
“Should the draft recommendation hold as is AND with the interpretation that an “alternative test” does NOT mandate commercial payors to cover Cologuard, we think the ultimate bear case could take the stock as low as its $4.00/share net cash position. We expect the stock to hover around $10 until the time the TF makes the draft recommendation final (around Q1 or Q2/16),” the analyst continued.
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 -20.3% and a 19.2% success rate. Massaro has a -54.3% average return when recommending EXAS, and is ranked #3759 out of 3769 analysts.
Out of the 12 analysts polled by TipRanks, 5 rate Exact Sciences stock a Buy, 6 rate the stock a Hold and 1 recommends a Sell. With a return potential of 80%, the stock’s consensus target price stands at $18.