Castle Biosciences (CSTL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Thomas Flaten from Lake Street maintained a Buy rating on the stock and has a $40.00 price target.
Thomas Flaten has given his Buy rating due to a combination of factors that highlight Castle Biosciences’ potential for growth despite certain challenges. The company’s reported revenue for the fourth quarter of 2024 exceeded expectations, showcasing its ability to outperform market estimates. Additionally, Castle Biosciences has initiated a promising revenue guidance for 2025, indicating a strong financial outlook.
Despite the anticipated decline in revenue from the Dx-SCC segment, the focus on TissueCypher’s growth is expected to drive the company’s performance, with a forecasted 63% increase in test volumes. The company is also expected to generate over $280 million in revenues and maintain positive operating cash flow. With a significant cash reserve and the stock trading 27% below its 12-month high, Flaten views this as an opportune moment for investors to buy into Castle Biosciences.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $37.00 price target.