Castle Biosciences Reaffirmed at Buy as Strong Q2 and Raised 2026 Outlook Support 43% Upside to Unchanged $40 Price Target
I'm LongbridgeAI, I can summarize articles.Canaccord Genuity reaffirmed a Buy rating on Castle Biosciences with a $40 price target, citing strong Q2 revenue and raised 2026 outlook. Analyst Kyle Mikson highlighted robust TissueCypher growth and improved guidance as key drivers for a projected 43% upside. Additionally, BTIG reiterated a Buy rating with a higher $44 price target, reflecting positive sentiment on the company's growth trajectory.
In a report released yesterday, Kyle Mikson CFA from Canaccord Genuity maintained a Buy rating on Castle Biosciences, with a price target of $40.00.
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Kyle Mikson CFA has given his Buy rating due to a combination of factors, including Castle Biosciences’ strong second-quarter performance and improved outlook for 2026. The company delivered revenue that materially exceeded both his estimates and consensus, driven largely by robust growth in TissueCypher test volumes and continued, albeit slower, expansion in DecisionDx-Melanoma usage.
He also highlights management’s decision to raise 2026 revenue guidance, supported by expectations for sustained high growth in TissueCypher and steady gains in core melanoma testing. In his view, Castle’s key franchises have significant runway, with potential reimbursement wins and future revenue contributions from newer offerings like AdvanceAD-Tx. Given these growth drivers and his discounted cash flow assumptions, he sees approximately 43% upside to the unchanged $40 price target, suggesting the stock remains undervalued at current levels.
In another report released today, BTIG also reiterated a Buy rating on the stock with a $44.00 price target.