• Guardant's Shield is a non-invasive blood test that, among other things, detects DNA mutations that happen in cancer cells.
• BTIG said the news is a "huge" derisking event for Guardant's screening business.
• Citi views United Healthcare’s move as "another positive catalyst" for Guardant Health.

Shares of Guardant Health (GH) surged on Wednesday after top U.S. health insurer UnitedHealth (UNH) disclosed that the company’s cancer testing product will be eligible for coverage.

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At the time of writing, GH stock was up nearly 10% and on track to hit over five-year highs if session gains hold.

UNH Offers Coverage For Guardant Health’s Shield

UnitedHealth said that effective August 1, blood-based colorectal cancer screening using Guardant’s Shield product will be eligible for coverage.

According to Guardant, Shield is a non-invasive blood test that, among other things, detects DNA mutations that happen in cancer cells and changes in the chemical structure. The Food and Drug Administration (FDA) approved the product in July 2024.

The FDA has authorized Shield for adults 45 years or older who have an average risk of colorectal cancer and need to undergo colorectal cancer screening.

Analysts Cheer UNH’s Coverage Of GH’s Shield

Citi sees UnitedHealth’s move as "another positive catalyst" for Guardant Health, per TheFly. “This expansion of the covered patient opportunity unlocks a new cohort of volumes and should drive significant average selling price benefits,” the firm said.

BTIG said the news is a "huge" derisking event for Guardant's screening business, and now expects other commercial payors to follow suit over the coming quarters. The firm also praised the timing of the coverage, which came roughly 1-2 years ahead of its expectations.

BTIG hiked GH stock’s price target to $190 from $150, implying an upside potential of nearly 27% from the stock’s closing price on Tuesday. Both firms maintain their ‘Buy’ rating on Guardant.

What Retail Traders Think About GH

On Stocktwits, retail sentiment toward the stock remained in ‘bullish’ territory over the last 24 hours.

GH shares have gained roughly 61% so far this year and have more than tripled in value over the past 12 months, outperforming the benchmark S&P index.

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