Guggenheim upgraded Guardant Health to Buy from Neutral with a $36 price target. Based on recent checks and an updated revenue model, the analyst’s view has evolved on how Shield will ultimately be used as an every three year test for the colorectal cancer screening non-compliant market. While this is a smaller market opportunity than outlined by management, it is still sizable at $8B per year, the analyst tells investors in a research note. The firm came away from the FDA advisory committee meeting more confident in Shield FDA approval as a first line colorectal cancer screening test, with clear language noting that it is not an advanced adenoma screening test. It’s sum-of-the-parts analysis supports 20% share upside from here.
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