BofA Securities initiates coverage on Caris Life Sciences stock with Buy rating

Published 13/07/2025, 16:44
BofA Securities initiates coverage on Caris Life Sciences stock with Buy rating

Investing.com - BofA Securities initiated coverage on Caris Life Sciences Inc (NASDAQ:CAI) with a Buy rating and a price target of $31.00 on Sunday, representing a potential 17% upside from the current price of $26.51. According to InvestingPro, the stock is trading near its 52-week low of $25.40.

The firm identified Caris as a molecular diagnostic company with a differentiated, data-driven platform for tissue-based tumor profiling in the rapidly growing field of molecular-based therapy selection. With a market capitalization of $7.4 billion, InvestingPro data shows the company maintains a "Fair" overall financial health score.

BofA Securities noted that Caris stands out from competitors due to the breadth of its tests, AI/data analysis capabilities, and high reimbursement rate.

The research firm forecasts Caris to achieve a market-leading financial profile with a 41% sales compound annual growth rate from fiscal year 2024 to fiscal year 2027, along with a 28% adjusted EBITDA margin in fiscal year 2027.

BofA Securities indicated that Caris deserves a multiple at or slightly above its peer group based on these financial projections and market positioning.

In other recent news, Caris Life Sciences has announced the validation of its Caris Assure blood-based biopsy platform for cancer detection and monitoring. A study published in Scientific Reports highlighted the platform’s capabilities in therapy selection, early cancer detection, and disease monitoring. The test achieved sensitivities between 83.1% and 95.7% across cancer stages I-IV, with a specificity of 99.6%. Caris Life Sciences reported that the platform demonstrated predictive power for cancer recurrence, with significant hazard ratios for minimal residual disease and therapeutic monitoring. The Caris Assure platform utilizes advanced sequencing and machine learning technologies to analyze over 23,000 genes in DNA and RNA from plasma. Trained on extensive tissue profiles and matched blood samples, the test does not require a prior tissue biopsy. Caris Life Sciences is currently seeking reimbursement and regulatory pathways to expand the platform’s applications beyond its current use in advanced cancers.

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