Domo signs strategic collaboration agreement with AWS for AI solutions
Investing.com - Morgan Stanley (NYSE:MS) raised its price target on Grail , Inc. (NASDAQ:GRAL) to $38.00 from $20.00 on Monday, while maintaining an Equalweight rating on the cancer detection company’s stock. The stock, which has surged over 146% year-to-date according to InvestingPro data, currently trades at $46.18.
The investment firm cited "significant long-term potential" for Grail’s Galleri multi-cancer early detection (MCED) test, which aims to detect multiple types of cancer through a single blood draw before symptoms appear.
Morgan Stanley noted that despite the promising technology, Grail faces "inherent risks associated with novel technologies from a regulatory/reimbursement pathway perspective," highlighting the challenges in gaining widespread adoption and insurance coverage.
The firm identified the upcoming National Health Service (NHS)-Galleri study readout in 2026 as the "next key catalyst" for the stock, suggesting investors should watch this clinical trial result closely.
Grail, which was founded in 2016 and went public in 2023, has positioned its Galleri test as a potential breakthrough in cancer screening, though Morgan Stanley’s Equalweight rating suggests a balanced view of the company’s near-term prospects despite the significantly higher price target.
In other recent news, GRAIL, Inc. reported its Q1 2025 earnings with a notable 19% year-over-year increase in revenue, reaching $31.8 million. The company exceeded earnings per share expectations with a result of -$3.10 compared to the anticipated -$4.26. Despite these financial achievements, GRAIL continues to face challenges with a net loss of $106.2 million and a significant cash burn. The company remains optimistic, reaffirming its full-year guidance and expecting continued growth in U.S. sales of its Galleri test. GRAIL also reported positive results from its PATHFINDER 2 study, enhancing the detection rates of its Galleri multi-cancer early detection test. Meanwhile, Canaccord Genuity raised its price target for GRAIL to $43, reflecting confidence in the company’s long-term revenue prospects. However, a report by Ningi Research raised concerns over GRAIL’s regulatory challenges and the commercial viability of its Galleri test. Additionally, GRAIL’s stockholders elected a new director and ratified Ernst & Young LLP as the company’s auditor during the recent Annual Meeting of Stockholders.
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