Citigroup Reiterates Buy Rating for Caris Life Sciences, Raises PT to $42.

Citigroup Reiterates Buy Rating for Caris Life Sciences, Raises PT to $42.

Citigroup has maintained its Buy rating for Caris Life Sciences Inc. (NASDAQ: CAI) and raised its price target to $42, reflecting the investment bank's confidence in the company's growth trajectory. The move comes after Caris reported strong second-quarter (Q2) 2025 earnings, with revenue of $181.4 million, surpassing FactSet estimates by $43.4 million [2].

Caris Life Sciences, a molecular diagnostics firm, demonstrated robust performance in the tissue therapy selection market, with revenue growing by 80% and maintaining its market leadership position. The company's MI Cancer Seek (Tissue) CDx product, which carries a premium CMS reimbursement rate of $8,455, contributed significantly to this growth.

The company's recent earnings have been supported by strong market penetration and a healthy gross margin of 46.71%. Additionally, Caris Life Sciences has shown sustained adjusted EBITDA profitability, an impressive feat for a newly public company [1].

Investment analysts from BTIG and Evercore ISI have also raised their price targets for Caris Life Sciences in recent weeks. BTIG increased its target to $45, while Evercore ISI raised its target to $40, both reflecting their optimism about the company's prospects in the molecular diagnostics space [1].

These positive developments indicate a period of robust financial performance for Caris Life Sciences, with significant growth potential in the therapy selection market, which currently stands at approximately 30% penetration.

References:
[1] https://www.investing.com/news/analyst-ratings/caris-life-sciences-stock-price-target-raised-to-45-from-38-at-btig-93CH-4187802
[2] https://www.marketscreener.com/news/earnings-flash-cai-caris-life-sciences-inc-reports-q2-revenue-181-4m-vs-factset-est-of-138-0-ce7c51dadf8af725