Guardant Health Inc. stock surges 2.64% to $51.35, trading 75.6% above its average daily volume.

Guardant Health Inc (GH) shares surged 2.64% to $51.35 on June 27, with a trading volume of 1,825,253 shares, 75.6% of the average daily volume. The stock reached an intraday high of $53.42, placing it 3.87% below its 52-week high and 154.97% above its 52-week low. Analysts forecast an average target price of $58.36, indicating a 13.65% upside from the current price. The estimated GF Value in one year is $49.72, suggesting a 3.17% downside from the current price.

The Supreme Court's recent ruling in the case of Kennedy v. Braidwood has had a significant impact on the healthcare sector, particularly on companies involved in preventive healthcare services and HIV treatment. On Friday, June 27, stocks of Guardant Health (NASDAQ:GH), Exact Sciences (NASDAQ:EXAS), Labcorp (NYSE:LH), and Gilead Sciences (NASDAQ:GILD) traded higher following the court's decision to uphold a key Obamacare provision.

The court's 6-3 decision in favor of the U.S. Preventive Services Task Force (USPSTF) has important implications for healthcare providers and drugmakers. The ruling, which struck down a lower court decision, affirmed that the appointments of USPSTF members are consistent with the U.S. Constitution. This decision could boost providers of preventive healthcare services, such as cancer screenings and HIV pre-exposure prophylaxis (PrEP).

Guardant Health, which specializes in cancer screening, saw its shares surge 2.64% to $51.35 on June 27, with a trading volume of 1,825,253 shares. This represents a 154.97% increase from its 52-week low. Analysts forecast an average target price of $58.36, indicating a 13.65% upside from the current price. The estimated GF Value in one year is $49.72, suggesting a 3.17% downside from the current price [1].

Meanwhile, Exact Sciences, which markets the Cologuard cancer screening test, also benefited from the ruling. Leerink analyst Puneet Souda noted that the decision "resolves one of the main negative risks to the company and its commercial execution," maintaining an "Outperform" recommendation and a $90 target on the stock [1].

Gilead Sciences, which is involved in HIV treatment, also saw its stock rise. Jefferies analyst Michael Yee argued that the ruling removes a key overhang for the company ahead of its upcoming launch of the recently approved twice-yearly injectable HIV PrEP therapy Yeztugo. Yee reiterated his "Buy" rating and $130 per share target on GILD [1].

While the ruling has positive implications for these companies, CVS Health (CVS) faces a significant legal hurdle. A Philadelphia judge ruled that the company must pay $95 million to the federal government due to overcharges to Medicare by its unit, CVS Caremark. Despite this challenge, analysts remain optimistic, with a 15.16% potential upside and a 24.95% upside based on fair value analysis [2].

In conclusion, the Supreme Court's decision has had a positive impact on several healthcare stocks, particularly those involved in preventive healthcare services and HIV treatment. While CVS Health faces a substantial legal liability, the overall market sentiment remains favorable, with positive price targets and analyst recommendations.

References:
[1] https://seekingalpha.com/news/4463346-exas-stock-gilead-stock-rise-supreme-court-ruling
[2] https://www.gurufocus.com/news/2950405/cvs-health-cvs-faces-95m-penalty-for-medicare-overbilling