Future Revenue Growth and Margin Expansion at Castle Biosciences Unrecognized, This Analyst Says
Portfolio Pulse from Vandana Singh
Canaccord Genuity maintains a Buy rating on Castle Biosciences Inc (NASDAQ:CSTL) but lowers the price target from $60 to $40 due to lower DecisionDxSCC revenue and an increased discount rate. Novitas has stated that Castle's DecisionDx-SCC and DecisionDx-Melanoma do not meet the criteria for coverage, but the company is working on a solution.
June 06, 2023 | 7:28 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Canaccord Genuity maintains a Buy rating on Castle Biosciences but lowers the price target from $60 to $40. Novitas denies coverage for DecisionDx-SCC and DecisionDx-Melanoma, but the company is working on a solution.
The lowered price target from $60 to $40 is a negative factor for CSTL's stock price. However, the maintained Buy rating and the company's efforts to find a solution to the Novitas coverage issue could offset the negative impact. Therefore, the short-term impact on the stock price is neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100