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On Wednesday, Canaccord Genuity analyst Kyle Mikson increased the price target for GRAIL, Inc. (NASDAQ: GRAL) to $43.00, up from the previous $32.00, while maintaining a Buy rating on the company’s shares. The stock has shown remarkable momentum, with InvestingPro data showing a 171% return over the past six months and a market capitalization of $1.51 billion. Mikson’s optimistic stance follows GRAIL’s recent first-quarter financial performance for the year 2025, which, despite falling slightly short of expectations, underscored the company’s growth potential in the multi-cancer early detection (MCED) market.
GRAIL, which specializes in the MCED test known as Galleri, reported a 24% year-over-year increase in revenue from this product, contributing to an overall revenue growth of 30.47% in the last twelve months. While the company maintains strong liquidity with a current ratio of 9.71, InvestingPro analysis flags rapid cash burn as a key concern. The financial update revealed that GRAIL experienced a cash burn of nearly $90 million during the first quarter, slightly higher than what was anticipated.
Despite the higher cash burn, GRAIL reaffirmed its guidance for the full year 2025, predicting continued growth in U.S. sales of Galleri and a consistent rate of cash consumption. This projection is supported by a strong start to the year and the expectation of significant upcoming developments.
The company is on schedule to release data from its PATHFINDER 2 study by the end of 2025 and aims to present final results from the NHS-Galleri trial by mid-2026, with a plan to submit findings to the FDA in the first half of 2026. These milestones are anticipated to further validate Galleri’s effectiveness and bolster GRAIL’s position in the market.
Mikson’s increased confidence in GRAIL’s long-term revenue prospects from Galleri has led to the raised price target. According to InvestingPro’s Fair Value analysis, GRAIL appears slightly overvalued at current levels, though this assessment doesn’t fully account for the company’s future growth potential in the early detection of multiple types of cancer. For deeper insights into GRAIL’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Grail Inc reported its Q1 2025 earnings, revealing a notable 19% increase in revenue year-over-year, totaling $31.8 million. The company’s earnings per share (EPS) of -$3.10 surpassed analyst expectations, which had forecasted a loss of -$4.26. Despite these positive financial results, Grail continues to face challenges with a net loss of $106.2 million, which, while significant, represents a 51% improvement from the previous year. The company also launched an enhanced version of its Gallery test and expanded its market presence, indicating ongoing investment in product development. Grail’s future outlook includes anticipated U.S. Gallery revenue growth of 20-30% in 2025, with key milestones such as interim PATHFINDER two data expected in late 2025 and a planned FDA PMA submission in the first half of 2026. Furthermore, Grail announced a new partnership with athenahealth to streamline the Gallery test ordering process, aimed at enhancing the efficiency of service delivery. These recent developments underscore Grail’s commitment to expanding its market presence and advancing its product offerings, despite ongoing financial challenges.
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