Castle Biosciences: Broad-Based Test Growth, Strengthening Cash Generation, and Pipeline Upside Support Reiterated Buy and $50 Target

Canaccord Genuity analyst Kyle Mikson CFA reiterated a Buy rating on Castle Biosciences today and set a price target of $50.00.

Kyle Mikson CFA has given his Buy rating due to a combination of factors that highlight Castle Biosciences’ strong operational and financial trajectory. He points to robust test volume growth in the company’s core franchises, particularly DecisionDx-Melanoma and TissueCypher, which exceeded his expectations and together support a forecast of more than 30% year-over-year core revenue growth in 2025. Management’s decision to lift 2025 revenue guidance to above $340 million, along with the expectation of a second consecutive year of positive free cash flow and a solid year-end cash and investments position, reinforces his confidence in the company’s fundamentals. He also emphasizes that strength appears broad-based across the testing portfolio, not reliant on a single product.

In addition, Kyle highlights TissueCypher’s accelerating adoption and sizable addressable market as a key long-term growth driver that is helping offset revenue lost from prior reimbursement changes. He views the ongoing reconsideration process for DecisionDx-SCC reimbursement as an important potential catalyst, with a realistic chance of positive coverage developments beginning in 2026–2027. The company’s broader pipeline, including the AdvanceAD-Tx test and multiple reimbursement strategies, offers further upside opportunities beyond the current forecast period. Taken together, he believes Castle Biosciences is a compelling small/mid-cap growth story for 2026, with the shares trading below what he views as their intrinsic value, supporting his reiterated Buy rating and $50 price target.

In another report released today, Lake Street also assigned a Buy rating to the stock with a $52.00 price target.