On Wednesday, BTIG adjusted its outlook on Exact Sciences (NASDAQ:EXAS) Corporation (NASDAQ:EXAS), a molecular diagnostics company, reducing the price target to $70 from the previous $80, while reiterating a Buy rating on the stock. The revision follows a 44% year-to-date decline in the company's share price.
The change in price target comes in the wake of recent executive departures at Exact Sciences. The company's Chief Commercial Officer, Everett Cunningham, left to join Illumina (NASDAQ:ILMN), a move that surprised some investors given the recent exit of the company's former CFO, Jeff Elliott. According to the company, Cunningham's decision was influenced by a desire to be closer to family in California and an opportunity to take on global commercial responsibilities at Illumina.
Investor concerns surrounding Exact Sciences have been noted, with issues such as the intensification of primary care sales personnel hiring, the potential FDA approval and primary screening label for Guardant Health (NASDAQ:GH)'s Shield blood test, and a projected slowdown in year-over-year growth for 2024. Additionally, there is anticipation of competition from Geneoscopy in the diagnostics space by 2025.
Looking ahead, Exact Sciences is expected to provide updates that could influence its trajectory. Analysts are anticipating the company's second-quarter earnings call, where a return to growth is expected. Developments are also expected with the Cologuard-blood test readout slated for fall, and potential FDA approval and possibly premium pricing for Cologuard Plus by or before the first quarter of 2025.
In other recent news, Exact Sciences Corp has seen significant developments. The company's shareholders recently elected three nominees to the Board of Directors and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the year 2024. Furthermore, an advisory vote approved the compensation paid to the company's named executive officers.
In contrast, Cathie Wood's ARK ETFs have been reducing their holdings in Exact Sciences. The ETFs sold substantial shares of the company across several trading days. The decision by ARK ETFs to reduce their position in Exact Sciences aligns with their recent trading patterns, indicating a strategic shift in their investment.
InvestingPro Insights
In light of BTIG's revised outlook on Exact Sciences Corporation (NASDAQ:EXAS), current real-time data from InvestingPro provides additional context for investors considering the stock. With a market capitalization of approximately $7.63 billion, Exact Sciences is trading near its 52-week low, reflecting investor sentiment that has led to significant price declines over various periods, including a 45.31% drop over the last six months. The company's revenue has grown by 15.21% over the last twelve months as of Q1 2024, indicating resilience in its sales despite broader market challenges.
Two InvestingPro Tips highlight critical concerns: analysts have recently revised their earnings expectations downwards for the upcoming period, and they do not anticipate the company will be profitable this year. These insights may be particularly relevant for investors as they weigh the potential risks and rewards associated with Exact Sciences' stock. Additionally, there are 7 more InvestingPro Tips available that could provide deeper analysis for those looking to make a more informed decision.
Investors interested in a comprehensive understanding of the company's financial health and future prospects can explore more tips by visiting https://www.investing.com/pro/EXAS. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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