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Guardant Health Inc GH

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Guardant Doesn't Quite Meet Our High Expectations in Q1; Novel Tests Support Positive Moat Trend

Aaron Degagne Equity Analyst

Analyst Note

| Aaron Degagne |

No-moat Guardant Health slightly underperformed compared with our expectations in the first quarter; the firm reported $78.7 million of revenue and a net loss of $109.7 million, or $1.09 per share. We expect stronger performance over the rest of the year led by the initial launch of Guardant Reveal and Advanced Diagnostic Lab reimbursement for Guardant360, and we are maintaining our $89 fair value estimate.

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Company Profile

Business Description

Guardant Health, based in Redwood City, California, provides cancer blood tests and analytics for clinical and research use, and the firm maintains research partnerships with large biopharmaceutical companies. The company offers Guardant 360, a blood-based (liquid biopsy) test for treatment selection in advanced stage cancer, and Guardant Omni, a broader gene panel for immuno-oncology research. The company’s pipeline includes Guardant Reveal (formerly Lunar-1), for cancer recurrence detection in survivors, and Lunar-2, a liquid biopsy for early detection of cancer in higher-risk individuals, with an initial focus on colorectal cancer. Additionally, Guardant offers research development services. The United States accounts for 90% of total revenue, and other markets the remaining 10%.

Contact
505 Penobscot Drive
Redwood City, CA, 94063
T +1 855 698-8887
Sector Healthcare
Industry Diagnostics & Research
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 864

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