Exact Sciences: ‘We Do Not Expect to See an Uptick in Adoption’

Source: Blogs Barrons Stocks To Watch

Benchmark’s Jan Wald and Erica Layon explain why they’re curbing their enthusiasm about changes to a recommendation for Exact Sciences (EXAS) colorectal cancer test:

The USPSTF has published a new Recommendation on Colorectal cancer screening that may impact Exact Sciences, a Hold rated stock with a $9 price target. We’ve gotten ahold of the USPSTF recommendation published on the JAMA website…To us, the recommendation has not changed, though the way it is formatted in the report has. The fact that there are no longer two categories may be meaningful, but the description of the benefits and harms has not changed. That may be viewed as a positive, but we are not sure. In a press release published yesterday, Exact Sciences implies that it has, but, again, we are not sure. As we have said in the past if the current recommendation stands (and it seems to us that it has more than it has changed), we do not expect to see an uptick in adoption that might be expected if it had.

Shares of Exact Sciences have jumped 12% to $10.43 at 10:10 a.m. today after getting upgraded to Buy from Hold at Craig Hallum.

Source: Blogs Barrons Stocks To Watch