Caris Life Sciences stock initiated with Buy rating at TD Cowen

Published 14/07/2025, 11:20
Caris Life Sciences stock initiated with Buy rating at TD Cowen

Investing.com - TD Cowen initiated coverage on Caris Life Sciences Inc (NASDAQ:CAI), a $7.37 billion market cap diagnostics company, with a Buy rating and a $32.00 price target on Monday. The stock currently trades at $26.51, with InvestingPro analysis indicating the company is trading above its Fair Value.

The research firm cited potential for 21% upside to its price target, despite the stock’s strong early performance since its market debut. With a current gross profit margin of 46.71% and annual revenue of $452.5M, the company maintains a FAIR financial health score according to InvestingPro, which offers 10+ additional key metrics and insights for subscribers.

TD Cowen expects Caris to generate superior sales growth with a 54% compound annual growth rate from 2024 to 2026, along with EBIT margin expansion reaching over 21% by 2027.

The firm believes these growth metrics support a premium multiple for the stock in the healthcare diagnostics sector.

According to TD Cowen, Caris is positioned for strong growth and market share gains, fueled by what the firm describes as "the sector’s most comprehensive assay" in its product portfolio.

In other recent news, Caris Life Sciences has been the focus of several analyst firms initiating coverage with optimistic ratings. JPMorgan has rated Caris Life Sciences with an Overweight rating, setting a price target of $31.00, and highlighted the company’s recent FDA approval for its tissue-based therapy selection assay. Guggenheim also initiated coverage with a Buy rating and a price target of $32.00, emphasizing Caris’ comprehensive therapy selection platform and extensive database. BTIG joined with a Buy rating and a $38.00 price target, noting Caris’ leadership in precision oncology and the potential expansion into other disease areas. BofA Securities also provided a Buy rating with a $31.00 price target, forecasting a strong financial profile for Caris with significant sales growth through 2027. Additionally, Caris Life Sciences announced the validation of its Caris Assure blood-based biopsy platform for cancer detection, demonstrating high sensitivity and specificity in a study published in Scientific Reports. The company is pursuing reimbursement and regulatory approvals to expand the platform’s applications beyond its current use in advanced cancer therapy selection. These developments reflect Caris Life Sciences’ strategic positioning in the precision diagnostics market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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