Guardant Health Has 'Underlying Business Strength' Says This Bullish Analyst

Shares of Guardant Health Inc GH climbed during the premarket trading session and morning on Wednesday.

Proprietary industry checks suggested the company could sustain around 20% growth for “a number of years,” given its strong position in profiling, according to Piper Sandler.

The Guardant Health Analyst: David Westenberg upgraded the rating for Guardant Health from Neutral to Overweight, while establishing a price target of $40.

The Guardant Health Thesis: Although competition in comprehensive genomic profiling is intensifying, most companies are not focusing on liquid biopsy, Westenberg said in the upgrade note.

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“While the profiling market is more mature and competitive, we think underlining market growth plus GH's competitive position should be enough to hit 2023 guidance,” the analyst wrote.

In the longer run, tumor independent could be the focus and Guardant Health will have the opportunity “to generate meaningful data and have more samples than anyone to train their AI algorithm,” he added.

The recent selloff in Guardant Health’s shares “presents a compelling opportunity to own the first mover in liquid biopsy,” Westenberg further stated.

GH Price Action: Shares of Guardant Health had risen by 5.87% to $27.02 at publication Wednesday.

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Photo: Courtesy Guardant Health