Leerink Partners analyst Puneet Souda maintained a Buy rating on Veracyte (VCYT – Research Report) on February 25 and set a price target of $50.00.
Puneet Souda has given his Buy rating due to a combination of factors that highlight Veracyte’s strong market position and growth potential. The company has developed substantial clinical evidence supporting the adoption of its Decipher and Afirma tests, which are key drivers of its business. The Decipher test, in particular, has shown impressive growth, with revenues increasing by 45% and expectations for continued growth in the coming year. This growth is supported by its inclusion in the NCCN guidelines and the productivity of the sales team, which has led to increased orders from both new and existing accounts.
Puneet Souda’s rating is also influenced by the strategic moves Veracyte is making, such as the potential exit from the French market, which is reflected in their revenue guidance. Despite concerns about the limited number of commercial products, the strong performance and market share of Decipher and Afirma provide confidence in the company’s future prospects. The Decipher test’s unique position as the only genetic test for localized prostate cancer in the NCCN Advanced Tools table further solidifies its market penetration and potential for continued success.
In another report released on February 25, UBS also maintained a Buy rating on the stock with a $49.00 price target.