GH Stock Forecast & Price Target

Guardant Health, Inc. demonstrated a strong financial performance in 2024, achieving a 31% year-over-year revenue growth, driven by increased clinical and biopharma test volumes. The company's adjusted gross margin improved to 63%, reflecting efficient cost management and favorable reimbursement trends, with notable increases in the Medicare rates for its tests. Additionally, Guardant anticipates continued revenue growth in oncology, projecting a year-over-year increase of approximately 15%, supported by rising clinical test volumes and expanded coverage policies from commercial payers.

Guardant Health, Inc. faces several significant challenges that contribute to a negative outlook on its stock. The growth of its therapy selection franchise and the adoption of its molecular residual disease (MRD) test, Reveal, are slower than anticipated, while the Shield colorectal cancer screening test remains unachieved in terms of Advanced Diagnostic Laboratory Test (ADLT) status and inclusion in USPSTF guidelines, hindering potential adoption. Additionally, the decline in average selling price (ASP) for Shield and the ongoing competitive landscape, alongside reimbursement challenges, further undermine the company's projected financial performance and revenue growth prospects.