Yuko Oku, an analyst from Morgan Stanley, maintained the Hold rating on GRAIL Inc (GRAL – Research Report). The associated price target is $38.00.
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Yuko Oku has given his Hold rating due to a combination of factors influencing GRAIL Inc’s current market position. The company’s revenue projections for 2025 have been slightly adjusted, reflecting a cautious optimism about its growth trajectory. The price target has been raised to $38, based on a discounted valuation model that considers GRAIL’s potential in the large multi-cancer early detection (MCED) market, which is estimated to have a total addressable market of over $50 billion. However, GRAIL’s current revenue figures remain significantly lower compared to its more established peers, indicating that it is still in the early stages of its commercial journey.
Despite the promising long-term prospects of GRAIL’s Galleri test, there are substantial risks associated with the regulatory and reimbursement pathways for novel technologies like MCEDs. The stock’s future performance is heavily dependent on upcoming milestones, such as the NHS-Galleri readout in 2026 and potential FDA approval in 2027. These events are crucial for broader adoption and reimbursement, but they are still several years away. Consequently, Yuko Oku believes that the stock will likely remain range-bound in the near term, justifying the Hold rating.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GRAL in relation to earlier this year.