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Barclays Initiates Coverage of Guardant Health, Exact Sciences, Natera With Overweight Rating

NEW YORK – Investment bank Barclays said Thursday that it has initiated coverage of Guardant Health, Exact Sciences, and Natera, all at an Overweight rating, citing large unpenetrated markets for liquid biopsy in residual disease detection, monitoring, and screening.

"The markets are big enough for several players, and we think a rising tide lifts all boats," Barclays analyst Luke Sergott said in an email to investors.

"We have covered the space directly and on the periphery for a long time, and we think we are jumping in at an inflection point," he added, suggesting that liquid biopsy testing had long seemed to be hanging at the fringe of the diagnostics market but has now broken through with broader adoption across "key markets."

According to Sergott, it's "too early to pick a winner" in the space, but Barclays created a primer on the market for investors, focused on applications of cell-free DNA testing in oncology, reproductive health, and organ transplants.

Barclays initiated coverage of Guardant Health at a price target of $60, admitting it might be a little late to the table considering Guardant's Medicare coverage win for colorectal cancer minimal residual disease testing announced earlier this week.

For Exact Sciences, the firm has set a price target of $70, citing the company's diverse pipeline and established position in colorectal cancer screening.

The investment bank cited a price target of $200 for Natera, noting that Barclays is confident Natera will continue to exceed analysts' expectations throughout 2025.