Guardant Health's (GH) base business looks to be in "fundamentally good shape" and the company is poised for cash flow breakeven, excluding the screening segment, in Q4, Morgan Stanley said in a note emailed Thursday.
The company's biopharma segment continues to gain "healthy" traction as partnerships increase, the note added.
Starting this year, the company will report revenue in four different business lines: oncology, biopharma & data, licensing & other, and screening, Morgan Stanley said.
Looking ahead in Q1, oncology and screening revenue are anticipated to rise sequentially but it will not be sufficient to fully offset the decline in pharma, Morgan Stanley said, adding that after Q1, revenue should "ramp" throughout the year.
Morgan Stanley raised Guardant Health's price target to $52 from $42 and maintained an overweight rating on the stock.
Shares of the company were down 1.3% in recent Thursday trading.
Price: 42.13, Change: -0.53, Percent Change: -1.25
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。