This cancer-testing stock is BTIG’s top pick after another major earnings beat
BTIG has designated Guardant Health as its top pick for 2026 following another impressive earnings report and an upgrade to its full-year guidance. The brokerage firm kept its buy rating and price target of $210, indicating an approximate 37% potential increase from its last closing price of $153.43. Analyst Mark Massaro highlighted the company's robust performance, driven by robust growth in both precision oncology and screening divisions.
Guardant Health disclosed a third-quarter revenue of $361 million, surpassing the forecasted $355 million and the industry average of $351 million. The firm also revised its 2026 revenue outlook to a range of $1.36 billion-$1.37 billion, with a midpoint that increased by $15 million due to the strong quarterly performance. Notably, Guardant Health's Shield colorectal cancer screening segment recorded a remarkable 180% surge in revenue, reaching around $68 million, coupled with a 246% rise in test volumes to 83,000.
Additionally, Guardant Health raised its 2026 Shield volume forecast to between 285,000-290,000 tests, up from the previous estimate of 270,000-285,000. The core oncology business experienced a 58% growth in volumes, reaching 117,000, and the Guardant360 revenue witnessed a nearly 30% increase. Reveal MRD, Guardant Health's minimal residual disease test, proved to be the fastest-growing oncology product, showcasing volume growth exceeding 100%.
BTIG's bullish outlook is supported by several potential catalysts, such as the expanded Medicare coverage for Reveal MRD, the anticipated launch of Reveal Ultra MRD by the end of 2026, and the potential for higher pricing on Guardant360 Smart Liquid, assuming it receives advanced diagnostic laboratory test status by 2027. The brokerage's price target of $210 is based on a 15.6-times multiple of its 2028 revenue estimate, discounted back at a 10% rate.
However, Guardant Health faces certain risks, including uncertainties in reimbursement and pricing, competition, and the timing of profitability.
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