Update shared on04 Oct 2025
Fair value Increased 40%Analysts have raised their price target for GRAIL from $40.50 to $56.50. They cite strengthened confidence in the company's platforms, positive expectations for future study results, and anticipation of supportive legislative developments.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight the company's increased price target as a reflection of growing conviction in GRAIL's platform capabilities and long-term market prospects.
- There is notable confidence regarding the anticipated performance of upcoming studies, particularly expectations of significantly higher positive predictive value in the PATHFINDER 2 trial.
- Analysts view GRAIL's proactive engagement with potential future changes to multi-cancer early detection (MCED) legislation as a positive catalyst for future adoption and market expansion.
- The overall Buy rating is maintained, suggesting that analysts see continued valuation upside based on execution and regulatory tailwinds.
- Some caution remains regarding the ability of GRAIL to consistently deliver on high expectations set for study outcomes and clinical performance.
- Bears note that while regulatory developments are promising, actual legislative changes that could benefit GRAIL are not guaranteed and may take time to materialize.
- There is ongoing scrutiny of competitive dynamics in the early cancer detection market. This could affect growth forecasts and the company’s execution risk profile.
What's in the News
- GRAIL, Inc. entered into a commercial lease agreement for a new 75,556 square foot headquarters at 250 S. Matilda Avenue, Sunnyvale, California. The agreement takes effect on September 11, 2025 (Key Developments).
- The company reported $28,000,000 in goodwill and intangible impairment charges for Q2 2025. This compares to $1.42 billion reported a year ago (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from $40.50 to $56.50, reflecting a notable upward revision.
- Discount Rate edged up slightly from 6.78% to 6.80%.
- Revenue Growth is projected to rise modestly from 20.08% to 20.22%.
- Net Profit Margin estimates have improved marginally from 16.06% to 16.11%.
- Future P/E ratio has risen substantially, moving from 58.1x to 80.6x.
Disclaimer
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