Wedbush Maintains Neutral On Exact Sciences, Sees 23% Downside For The Stock
Wedbush analyst Zarak Khurshid maintained a Neutral rating on Exact Sciences Corp (NASDAQ:EXAS) with a price target of $19, which represents a potential downside of 23% from where the stock is currently trading.
Khurshid noted, “We like how the company has effectively combined selling and implementation. It appears that new customers are able to be enrolled and begin offering the test on the same day, which we think is impressive.” However, “Still too many significant unknowns to chase shares at this valuation, in our view. Our $19 PT still assumes a 6x 2017E EV/sales multiple plus $220 MM in cash, discounted back at 15%. We believe our multiple is fair given the stellar progress, massive colorectal cancer opportunity, minimal competitive threats and strength of management. On our 2016E sales estimate of $241 MM, shares of EXAS are trading at an EV/sales multiple of ~8x, a premium to the group median of 3.5x.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Zarak Khurshid has a total average return of 5.7% and a 71.0% success rate. Khurshid has a 19.3% average return when recommending EXAS, and is ranked #998 out of 3354 analysts.