Morgan Stanley analyst Tejas Savant maintained a Hold rating on GRAIL Inc (GRAL – Research Report) today and set a price target of $20.00.
Tejas Savant’s rating is based on a combination of factors that reflect both positive developments and existing challenges for GRAIL Inc. The company’s revenue for the fourth quarter of 2024 was in line with expectations, driven by a significant increase in screening revenue. However, the overall growth was tempered by a decline in development services revenue. Additionally, while the company has made strides with new partnerships, such as those with Quest Diagnostics and TRICARE, these are seen as long-term benefits rather than immediate catalysts.
Despite the solid performance in certain areas, the lack of near-term catalysts is a key reason for the Hold rating. The company’s cash runway projection remains stable, extending into 2028, but the anticipated launch of Galleri v2 and improvements in cost of goods sold are expected to take time to impact the financials. Furthermore, while the 2025 guidance aligns with previous expectations, the absence of immediate drivers for growth keeps the outlook cautious. Therefore, the Hold rating reflects a wait-and-see approach as the company navigates these dynamics.
According to TipRanks, Savant is an analyst with an average return of -4.6% and a 38.32% success rate. Savant covers the Healthcare sector, focusing on stocks such as Stevanato Group, Pacific Biosciences, and Charles River Labs.