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UBS Reaffirmed Buy Rating on Veracyte (VCYT) After Strong Q4 Testing Revenue
Yahoo Finance· 2026-02-15 13:42
Core Viewpoint - Veracyte, Inc. (NASDAQ:VCYT) is recognized as a promising innovative stock by Wall Street analysts, with UBS reaffirming a Buy rating and a price target of $48 following strong Q4 testing revenue results [1][3]. Financial Performance - Veracyte reported preliminary Q4 2025 revenue of $138-140 million, marking a 16%-18% year-over-year increase, surpassing the consensus forecast of $132 million [4]. - The company’s 2026 testing revenue projections exceeded market expectations, maintaining an adjusted EBITDA margin forecast of 25%, up from approximately 21% in 2024 [3]. Growth Potential - Analysts suggest that Veracyte's current revenue projections may not fully capture all growth opportunities, particularly from new product contributions [3]. - The increase in testing revenue was primarily driven by higher average selling prices and prior-period collections rather than volume growth in Decipher tests [1]. Company Overview - Veracyte, Inc. is a genomic diagnostics company focused on developing tests aimed at improving diagnosis and treatment decisions for various cancers, including thyroid and lung cancers, as well as autoimmune diseases [4].