
CSTL Stock Forecast & Price Target
CSTL Analyst Ratings
Bulls say
Castle Biosciences Inc. is experiencing significant growth in its TissueCypher test, with a year-over-year increase of 92% in test volume for 2Q25 and continued momentum with a 75% growth rate in Q3. The company has also improved the gross margin for TissueCypher, achieving an impressive 77% margin, which reflects the effectiveness of its operational strategies. Additionally, with the gastrointestinal sales force expected to reach maturity in the second half of 2025, Castle Biosciences is well-positioned for sustained revenue growth in this segment.
Bears say
Castle Biosciences Inc. faces a challenging outlook primarily due to significantly lower expected EV-to-estimated revenue multiples for its dermatology and DecisionDx-UM tests compared to TissueCypher, which could impact overall revenue growth. Additionally, management acknowledged during the Q3'24 call that a lack of clinician awareness, particularly in the gastroenterology market, is a critical barrier to test adoption, indicating that penetration rates for key products may remain low. Despite indications that the stock appears undervalued based on conservative estimates, these underlying issues could hinder financial performance and investor confidence moving forward.
This aggregate rating is based on analysts' research of Castle Biosciences Inc and is not a guaranteed prediction by Public.com or investment advice.
CSTL Analyst Forecast & Price Prediction
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