Leerink Partners analyst Puneet Souda has maintained their bullish stance on GH stock, giving a Buy rating yesterday.
Puneet Souda has given his Buy rating due to a combination of factors that highlight the potential upside for Guardant Health. The recent approval of the Shield assay for ADLT status is a significant development, as it allows for a substantial increase in reimbursement rates by Medicare. This change raises the reimbursement from $920 to $1,495, which is a 62.5% increase, and it was anticipated to occur much later, in 2025.
This development is expected to positively impact Guardant Health’s financial performance, as the company had initially projected revenues for 2025 without factoring in the benefits of the ADLT status. The new reimbursement rate will be in effect for a nine-month evaluation period, and it sets a favorable precedent for future rates. Overall, this strategic milestone is seen as a catalyst for growth, supporting the Buy rating.
Souda covers the Healthcare sector, focusing on stocks such as Illumina, Natera, and Castle Biosciences. According to TipRanks, Souda has an average return of -14.1% and a 27.88% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $60.00 price target.
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