TD Cowen raises Caris Life Sciences stock price target on pipeline

On Wednesday, TD Cowen upgraded its price target for Caris Life Sciences Inc (NASDAQ:CAI) to $38.00 from $36.00, while keeping a Buy rating on the stock. Caris Life Sciences reported third-quarter sales that exceeded expectations by 9%, with clinical sales surpassing estimates by 14%. However, pharma sales fell short of expectations.

Revenue growth over the past year has been an impressive 85%, and the company maintains a robust gross profit margin of nearly 70%. Despite the sales and guidance beat, the stock experienced a 15% decline after the market closed. Clinical upside was primarily driven by price increases, with a modest 1% increase in volumes, yet a significant 21% year-over-year growth.

The stock has appreciated by 65% from pre-second-quarter levels, and InvestingPro data shows a six-month return of 75%. However, the stock appears overvalued according to InvestingPro analysis. The company's pipeline is still in the early stages but is shaping up. TD Cowen's assessment of the company remains positive, based on the Q3 results.

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