Evercore ISI Starts Caris Life Sciences Inc (CAI) at Outperform

Evercore ISI analyst Vijay Kumar initiates coverage on Caris Life Sciences Inc (NASDAQ: CAI) with a Outperform rating and a price target of $33.00.

The analyst comments "Superior & highly visible growth: We expect CAI to grow at ~40% CAGR over the next 3 years, with 2/3 of this being driven by reimbursement increase and 1/3 from volume. We est the mkt is ~40% penetrated currently, and expect it to reach ~60% penetration by FY27 driving teens volume growth. CAI also just got an updated reimb rate for its MI Cancer Seek Tissue Tx, which essentially doubled pricing for the company. Path to profitability & pricing sustainability: CAI gets reimbursed under CLFS, which is subject to PAMA. Current PAMA implementation timelines imply that ASPs should be sustainable through 2030. This should drive >2000 bps of GMx and provides visibility to OM breakeven by 1H’26. Pipeline optionality: Close adjacencies include screening for multi cancers (upstream to current Tx) and MRD (testing for cancer recurrence, which is downstream to Tx). CAI expects to launch these tests in the MT, which should become meaningful growth drivers beyond FY27."

For an analyst ratings summary and ratings history on Caris Life Sciences Inc click here. For more ratings news on Caris Life Sciences Inc click here.

Shares of Caris Life Sciences Inc closed at $26.51 yesterday.

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