Shares of Castle Biosciences, Inc. (CSTL) surged over 6.5% on Monday, driven by a combination of better-than-expected quarterly financial results and bullish analyst views on the medical diagnostics company's prospects.
In its latest earnings report for the third quarter ended September 30, Castle Biosciences posted adjusted earnings per share of $0.08, surpassing analysts' consensus estimate of a $0.06 loss. The company's revenue also exceeded expectations, rising nearly 40% year-over-year to $85.78 million, compared to analysts' projections of $79.84 million.
The strong earnings performance appears to have bolstered investor confidence in Castle Biosciences' growth trajectory. Adding to the positive sentiment, analysts at Lake Street raised their price target on the stock from $34 to $40 while reiterating a "Buy" rating. In a research note, Lake Street cited the company's robust revenue growth and expanding product portfolio as key drivers for the upward revision.
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