Canaccord Boosts Price Target on Exact Sciences (EXAS) as Pfizer Deal Marks Upside to the Top Line

Shares of molecular diagnostics company Exact Sciences (NASDAQ:EXAS) rose by double digits today on heavy volume, thanks to a new U.S. agreement with Pfizer to co-promote Cologuard, the first and only FDA approved non-invasive DNA colon cancer screening test. Under the nationwide agreement, Pfizer will provide marketing support for Cologuard and join Exact Sciences’ sales representatives in reaching physicians and health systems.

In reaction, Canaccord analyst Mark Massaro reiterates a Buy rating on EXAS, while boosting the price target to $72 (from $65), which implies an upside of 10% from current levels.

Massaro commented, “EXAS has always had a “Go Big” strategy – this one fits as “Big.” Today’s Pfizer deal is consistent with EXAS’s strategy of doing whatever it takes to get to $4B in annual revenue the fastest, from just $266M in FY’17. Given Pfizer is a best-in-class pharma company and has done 30+ co-promotional deals in the past, we think PFE is a strong partner. We come away with higher conviction in EXAS’ ability to hit its LT goals.”

“We recently hosted EXAS CFO Jeff Elliott for a fireside chat at the 38th Annual Canaccord Genuity Growth Conference in Boston. The discussion reinforced our view that investor returns will be back-end loaded in 2018, as we believe the 2% volume miss from Q2 resulted from temporary factors, some of which have already been corrected for. We believe EXAS has enough drivers in place to execute against its Q3 and Q4 guide, thus we reiterate EXAS as a top pick for 2018,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Massaro has a yearly average return of 17.5% and a 62% success rate. Massaro has a 56.6% average return when recommending EXAS, and is ranked #133 out of 4861 analysts.

Out of the 11 analysts polled in the past 12 months, 9 rate Exact stock a Buy, while 2 rate the stock a Hold. With a return potential of nearly 3%, the stock’s consensus target price stands at $67.


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