Veracyte's stock soared 7.81% during intraday trading on Thursday, marking a significant upward movement for the diagnostics company.

The surge follows a bullish analyst update from Needham, where analyst Michael Matson maintained a Buy rating on the company and raised his price target to $48.00 from $44.00. The analyst cited accelerating growth, expanding margins, and pipeline-driven upside as key factors supporting the increased valuation.

Further positive sentiment is likely driven by the company's upcoming commercial and clinical activities. Veracyte plans to present numerous abstracts from its urology portfolio at a major medical symposium and is preparing to launch its TrueMRD test for muscle invasive bladder cancer, highlighting progress in its product pipeline.