Oncology stock Guardant Health could be a big winner in the AI frenzy driven by ChatGPT, according to Canaccord Genuity. Analyst Kyle Mikson said in a report on Monday that the technology could be key in diagnosing human diseases, as he is optimistic about AI’s potential impact on diagnostic companies. “We believe AI will increasingly be used in diagnostics (and life science tools) in the future. In our view, early movers should benefit from this trend as the performance of their offerings demonstrates tangible advantages compared to those that don’t have AI,” he wrote. For example, the technology could provide patients with a diagnosis that has higher accuracy than other symptom checkers, he wrote. It could also help with medical administrative work by automatically formulating notations and improve medical education by helping healthcare workers navigate symptoms to determine treatment and next steps, the analyst said. Canaccord expects Guardant Health to see some improvement, boosted by its suite of AI-related technologies that the company announced in January. Mikson maintained his buy rating on the stock, as well as his $65 price target — indicating a 128% upside from Friday’s close. GH 1Y mountain Guardian Health shares have lost more than 19% this month. “As ChatGPT’s computing power and data increases, it is possible that the platform will provide analytical and problem-solving skills beyond the capabilities of current physicians. ChatGPT could also enable 24/7 access to healthcare services,” Mikson wrote. Last month, Guardant Health announced the launch of its Guardant Galaxy platform, which includes technologies that will aid the company’s tests and enable biomarker and drug discovery. The first application in the company’s product suite is an AI-powered digital pathology platform developed by South Korea-based Lunit. — CNBC’s Michael Bloom contributed to this story.
