Piper Sandler reiterates Guardant Health stock rating on coverage outlook

Piper Sandler has maintained an Overweight rating and set a $193.00 price target on Guardant Health (NASDAQ:GH) stock. The company's shares are currently valued at $173.45, reflecting a remarkable 206% increase over the past year, with a market capitalization of $23.24 billion. Analysts highlight several potential growth factors to bolster Guardant Health's prospects in 2027, including the commercial coverage of G360 Liquid CDx and camizestrant-related monitoring, which may not be entirely accounted for in current valuation estimates.

However, Piper Sandler anticipates a volatile near-term trajectory, as initial volumes driven by Shield coverage are expected to rise before improvements in average selling price take effect. This aligns with an InvestingPro Tip indicating substantial stock price volatility. Despite this, the company has achieved an impressive 96% return over the last six months.

The firm projects limited Reveal CMS coverage decisions this year and emphasizes that G360 ADLT continues to be a major revenue driver in the industry. Management's comments reinforce a substantial and enduring opportunity across G360, Reveal therapy monitoring, breast MRD, and Shield.

Guardant Health's stock has been relatively stagnant since its recent earnings report, as noted by Piper Sandler. In a related development, Guardant Health reported robust second-quarter revenue of $335 million, representing a 44% increase, demonstrating significant growth in oncology volumes (63% year-over-year) and Shield volumes (50% quarter-over-quarter).

Other analysts have also raised their price targets for Guardant Health. Stifel upgraded its price target to $180 from $130, maintaining a Buy rating. TD Cowen increased its target to $210 from $200, also retaining a Buy rating, citing strong Shield and G360 product volumes. Bernstein SocGen Group reiterated an Outperform rating with a $210 price target, suggesting that current gross margin estimates are conservative.

Rothschild Redburn initiated coverage with a Buy rating and set a $203 price target, highlighting Shield as a significant opportunity as the first FDA-approved colorectal cancer screening blood test.