Caris Life Sciences stock price target raised to $37 by BofA on strong ASP growth

Published 13/08/2025, 12:40
Caris Life Sciences stock price target raised to $37 by BofA on strong ASP growth

Investing.com - BofA Securities raised its price target on Caris Life Sciences Inc (NASDAQ:CAI) to $37.00 from $31.00 while maintaining a Buy rating following the company’s first earnings report. The stock, currently trading at $32.46, has shown strong momentum with a 12% gain in the past week. According to InvestingPro, analyst targets range from $31 to $42.

The tissue testing average selling price (ASP) reached $3,379, exceeding BofA’s estimate by $659, driven by strong adoption of MI Cancer Seek, which now represents 78% of tissue cases compared to 54% in the first quarter. The company, with a market capitalization of $9 billion and trailing twelve-month revenue of $452.5 million, maintains a healthy gross profit margin of 46.7%.

The reported tissue ASP included $179 from prior collections, making the true ASP approximately $3,200, with Medicare ASP approaching the $7,200 ceiling while commercial pricing surpassed $2,000, representing over $530 quarter-over-quarter improvement.

On the liquid biopsy side, ASP came in at $2,519, though this figure included a substantial $608 true-up from prior collections, suggesting liquid ASP will likely return to first-quarter levels before resuming growth.

BofA Securities noted that the company’s ability to achieve and maintain ASP targets was the primary upside driver during its listing period, supporting the higher price target.

In other recent news, Caris Life Sciences reported an impressive 81% year-over-year increase in total revenue during its Q2 2025 earnings call, reaching $181.4 million. This growth was primarily driven by the company’s molecular profiling services, which saw an 86% increase. Analysts have responded positively to these earnings results, with BTIG raising its price target for Caris Life Sciences to $45 from $38, while maintaining a Buy rating. Evercore ISI also increased its price target to $40 from $33, maintaining an Outperform rating, and noted the strong revenue growth of approximately 81% in the third quarter. The revenue growth was largely attributed to increases in average selling prices from the Centers for Medicare & Medicaid Services (CMS). Caris Life Sciences’ MI Cancer Seek (Tissue) CDx product, with a premium CMS reimbursement rate, significantly contributed to the revenue exceeding expectations by 31%. These developments highlight the company’s robust performance and positive outlook from analysts.

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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