Jun. 18 at 3:37 PM
$EXAS May 27, 2025
CFRA Adds Exact Sciences Corporation to the Small/Mid-Cap Growth Portfolio (EXAS 56.95): We are adding EXAS, a leading global cancer screening and diagnostics company, to
the portfolio as we think current valuations offer an attractive entry point given EXAS’s superior growth outlook versus peers. We are encouraged by the company’s product portfolio, specifically its flagship colorectal cancer screening test
(Cologuard) as well as Oncotype IQ cancer diagnostic tests and services. We forecast EXAS to become profitable starting in 2025, reversing net losses recorded in previous years, with the new version of the company’s Cologuard Plus positively
impacting both revenue and margin expansion over time, which comes with a higher selling price and a lower cost per unit. Our 12-month target price of
$65 is based on
our DCF model, which assumes a beta of 1.25, a terminal growth rate of 2.5%, and a WACC of 11%. EXAS replaces Tandem Diabetes Care.
