In an earlier research note to investors, Canaccord analyst Mark Massaro reiterated a Buy rating and $125 price on Guardant Health shares, and noted that he met with Guardant Health co-founder and CEO Helmy Eltoukhy and CFO Derek Bertocci. The analyst says the CEO touted innovation, risk-taking, and TAM expansion, and indicated that the analyst's $120B global TAM estimate for Guardant is "not far off." Further, as the company launches new franchises, it sees geometric increases in available market size, and overlapping growth cycles for many years to come, the analyst adds. Despite some recent weakness in shares, Massaro would be a buyer on the dip.

Craig-Hallum assumed coverage of Guardant Health with a Buy rating with a price target of $28, down from $54. The firm remains bullish about the opportunities in therapy selection and are not all that concerned about emerging competition in liquid biopsy. Further, it is also bullish about the potential for Reveal, over time. Craig-Hallum thinks that there is a significant market for a tumor-naive MRD test. Tissue is simply not an option for all patients. Guardant appears to have the most viable test. Additionally, the firm believes the Shield colorectal screening test will be commercially viable, if FDA approved. The consensus view seems to be that there is no chance for this test to be included in the next USPSTF colon cancer screening recommendation. Craig-Hallum thinks that there is a reasonable likelihood that it will be included.