JPMorgan initiates Caris Life Sciences stock with Overweight rating

Published 14/07/2025, 08:06
JPMorgan initiates Caris Life Sciences stock with Overweight rating

Investing.com - JPMorgan initiated coverage on Caris Life Sciences Inc (NASDAQ:CAI) with an Overweight rating and a price target of $31.00 on Monday. The target represents a 17% upside from the current price of $26.51, with analyst consensus strongly bullish. According to InvestingPro data, the company commands a market capitalization of $7.37 billion.

The investment bank views CAI as a leading diagnostics company focused on enabling precision medicine through its platform that captures comprehensive molecular information.

JPMorgan highlighted the company’s whole exome sequencing and whole transcriptome sequencing technology, which targets more genes than competitive assays in clinical applications for therapy selection and eventually minimal residual disease and early cancer detection.

The firm noted that CAI recently reached an inflection point following FDA approval of its tissue-based therapy selection assay as a companion diagnostic, which comes with a higher average selling price.

JPMorgan projects a 2025-2028 revenue compound annual growth rate of 33.3% for CAI and expects the company to reach positive adjusted EBITDA in the fourth quarter of 2025, ramping to a 35.8% adjusted EBITDA margin in 2028.

In other recent news, Caris Life Sciences announced the validation of its Caris Assure blood-based biopsy platform for cancer detection and monitoring, as published in Scientific Reports. The study highlighted the platform’s capabilities in therapy selection, early cancer detection, and disease monitoring, achieving sensitivities between 83.1% and 95.7% across cancer stages with 99.6% specificity. Caris Life Sciences is also pursuing reimbursement and regulatory pathways to expand the platform’s applications. Additionally, several firms have initiated coverage on Caris Life Sciences stock with Buy ratings. Guggenheim set a price target of $32.00, emphasizing the company’s comprehensive therapy selection platform and large database as competitive advantages. BTIG assigned a price target of $38.00, noting Caris as a leader in precision oncology with innovative offerings like the FDA-approved MI Cancer Seek assay. BofA Securities provided a price target of $31.00, highlighting Caris’ differentiated platform and projecting a 41% sales compound annual growth rate from fiscal year 2024 to 2027. These recent developments underscore Caris Life Sciences’ strategic positioning in the precision diagnostics and oncology markets.

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