Guardant Health (GH) has an "underappreciated" catalyst path as the company's colorectal cancer screening tool has a "greater commercial opportunity" than previously expected, UBS said in a note emailed Friday.
The firm said it was more constructive on genomics application companies versus genomics technology companies in 2025 and that Guardant was its top pick within the group.
UBS said that a survey of physicians indicated that blood-based colorectal cancer screening tools could amount to around 10% of market share in the next one to two years, more than twice the consensus forecasts. This could be a catalyst for Guardant's Shield colorectal cancer screening tool, alongside pricing upside and medical society guidelines, according to UBS.
UBS also struck a positive tone on Natera (NTRA) which it said should continue to ramp volumes for its cancer screening tool Signatera, as well as a "positive growth trajectory" for Veracyte (VCYT).
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