Analyst Kyle Mikson CFA from Canaccord Genuity maintained a Buy rating on Castle Biosciences (CSTL – Research Report) and keeping the price target at $42.00.
Kyle Mikson CFA has given his Buy rating due to a combination of factors that highlight Castle Biosciences’ strong performance and growth potential. The company reported impressive fourth-quarter results for 2024, surpassing both the analyst’s expectations and the consensus, with significant year-over-year revenue growth driven by increased test volumes. This robust performance was primarily attributed to the momentum of the TissueCypher test, which is expected to be a major revenue driver in 2025, supported by an expanded sales force.
Additionally, Castle Biosciences is well-positioned for long-term growth due to its substantial market opportunities in dermatology and a promising test pipeline. Despite potential challenges with the DecisionDx-SCC test coverage, the company remains optimistic about ongoing litigation and discussions that could positively impact future coverage decisions. The 2025 revenue guidance provided by Castle indicates solid growth prospects, excluding the impact of DecisionDx-SCC, with expectations of high-single-digit to mid-teens growth driven by TissueCypher and other tests. These factors collectively underpin the Buy rating given by Kyle Mikson CFA.
CSTL’s price has also changed moderately for the past six months – from $29.440 to $25.280, which is a -14.13% drop .