Guardant Health (GH) is positioned to benefit from growth opportunities in tumor profiling business, RBC Capital Markets said in a Thursday report.
The report said its core tumor profiling business is vastly underpenetrated, with a recent study found only about 25% of metastatic cancer patients in the US receive genomic profiling.
"Guardant, as the market leader, is best positioned to benefit as adoption expands," the report said.
The recent approval of Guardant360 Liquid CDx should unlock a meaningful volume opportunity, while growing use of Guardant Reveal for therapy response monitoring should have positive knock-on effects for G360 demand, the report said.
The note also pointed to other catalysts, including pending Medicare coverage decisions for Guardant Reveal.
RBC initiated coverage on the stock with an outperform rating and a $185 price target.
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