Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Canaccord Genuity maintained its Buy rating and $37.00 price target on Castle Biosciences (NASDAQ:CSTL) following the company’s third-quarter 2025 results released Monday. This target represents a 39% upside from the current price of $25.99, aligning with the broader analyst consensus that remains bullish on the stock.
Castle Biosciences reported quarterly results that exceeded both Canaccord’s expectations and FactSet consensus estimates. The performance was partly attributed to strong sequential test volume growth for TissueCypher, which Canaccord noted appears to be serving a largely underpenetrated market. The company maintains impressive financial fundamentals with a gross profit margin of 81% and a healthy current ratio of 6.85, indicating strong operational efficiency.
The company announced it expects its DecisionDx-SCC test to return to "material" consistent revenue potentially in the 2027/2028 timeframe. Castle Biosciences also launched AdvanceAD-Tx, a new test designed to guide treatment decisions for patients ages 12 and older with moderate-to-severe atopic dermatitis. InvestingPro data shows Castle holds more cash than debt on its balance sheet, providing financial flexibility to support these growth initiatives.
Following the strong quarterly performance, Castle Biosciences raised its full-year 2025 revenue guidance. The company did not disclose specific figures for the updated guidance in the provided information. This positive outlook comes despite InvestingPro data indicating net income is expected to drop this year, reflecting the company’s continued investment in growth.
Canaccord believes Castle Biosciences could drive "solid long-term revenue growth" through deeper penetration of its maturing dermatologic cancer market, maintaining TissueCypher momentum, and securing reimbursement for its new AdvanceAD-Tx test and pipeline products. The firm described the company’s shares as "highly attractive at current levels." This view is supported by Castle’s recent market performance, with the stock posting a 7.62% return over the past week and a substantial 34.32% gain over the last six months. For deeper insights into CSTL’s valuation and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Castle Biosciences reported its third-quarter 2025 earnings, exceeding revenue expectations. The company achieved net revenues of $83 million, surpassing the forecasted $71.03 million. Additionally, Castle Biosciences posted an adjusted earnings per share (EPS) loss of $0.02, which was significantly better than the anticipated loss of $0.52. These developments highlight the company’s financial performance in the recent quarter. Investors and analysts are closely monitoring these results as they reflect a stronger-than-expected financial position. The earnings report is a key focus for those interested in the company’s recent activities. This information is part of the ongoing developments surrounding Castle Biosciences.
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