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Investing.com - Wolfe Research initiated coverage on Caris Life Sciences Inc (NASDAQ:CAI) with an Outperform rating and a $32.00 price target on Monday. The target represents a 20.7% upside from the current price of $26.51, with InvestingPro data showing the company commands a market capitalization of $7.37 billion.
The research firm cited Caris Life Sciences’ positioning to generate best-in-category revenue growth, with expected compound annual growth rates of approximately 13% in volume and 17% in average selling price from 2024 to 2029.
Wolfe Research also highlighted the company’s clear path to solid EBITDA margins, projecting approximately 30% by 2029 as Caris leverages its existing laboratory, commercial, and research and development infrastructure.
The $32 price target represents approximately 10 times Wolfe’s estimated 2026 sales and 30 times its 2027 EBITDA estimates for the company.
Wolfe Research noted that key pipeline initiatives, including minimal residual disease (MRD) and multi-cancer early detection (MCED), along with monetization of the company’s approximately 6.5 million sample clinico-genomic dataset, represent potential upside to their forecast.
In other recent news, Caris Life Sciences has attracted significant attention from various research firms, with multiple analysts initiating coverage on the company. Evercore ISI gave Caris an Outperform rating, projecting a 40% compound annual growth rate over the next three years, driven by reimbursement increases and volume growth. Citi also initiated coverage with a Buy rating, highlighting Caris’ unique financial profile and projecting an adjusted EBITDA margin of 13.6% by fiscal year 2026. TD Cowen expects a 54% compound annual growth rate from 2024 to 2026, with EBIT margin expansion reaching over 21% by 2027, supporting a Buy rating. JPMorgan assigned an Overweight rating, noting Caris’ recent FDA approval for its tissue-based therapy selection assay, and projects a revenue compound annual growth rate of 33.3% from 2025 to 2028. Guggenheim also rated Caris with a Buy, emphasizing the company’s comprehensive therapy selection platform and large database as competitive advantages. These recent developments reflect a positive outlook from analysts on Caris Life Sciences’ growth potential and profitability.
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