Roth Capital Reiterates Buy on Exact Sciences Corporation; Here’s Why
Exact Sciences Corporation (NASDAQ:EXAS) shares are up 9% today after Anthem Blue Cross announced a positive coverage decision for Exact’s Cologuard test. Anthem is the largest insurance carrier under the Blue Cross Blue Shield umbrella with 38 million covered lives through its affiliated health plans.
Subsequently, Roth Capital analyst Chris Lewis reiterated a Buy rating on the stock with a $26 price target, which represents a potential upside of 6% from where the stock is currently trading.
Lewis noted, “We see this as a meaningful win for EXAS as Anthem marks the first major national private carrier to issue a positive national coverage decision for Cologuard. This comes ahead of our timing expectations. We expect more major carriers could follow suit going forward, perhaps sooner than previously anticipated. The expectation for private insurance coverage to be a gradual, somewhat drawn out process, along with a softer 1Q15 volume outlook, have been the key weakness drivers in the stock since the 4Q call in recent weeks, in our opinion. This news should help offset some of those recent pressures.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Lewis has a total average return of -1.5% and a 46.2% success rate. Lewis has a -2.3% average return when recommending EXAS, and is ranked #2914 out of 3505 analysts.