Shares of diagnostics solutions provider Castle Biosciences (NASDAQ:CSTL) are skyrocketing today after Novitas Solutions announced that an earlier coverage determination that had rescinded coverage for a number of genetic tests for cancer will not be effective on July 17.
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The previous local coverage determination had rescinded coverage for CSTL’s DecisionDx-Melanoma and DecisionDx-SCC tests. Now, Novitas plans to draft a new determination which will be open for comments and presented at a future open meeting.
CSTL’s Dx-SCC test has also received an ADLT status from CMS at $8,500 per test, and today, Lake Street’s Thomas Flaten has reiterated a Buy rating on CSTL alongside a $32 price target after the recent developments.
CSTL is also slated to present new data for multiple tests in squamous cell carcinoma and cutaneous melanoma at the American Head and Neck Society’s International conference between July 8-12 in Canada.
Overall, the Street has a $34 consensus price target on CSTL alongside a Strong Buy consensus rating. This points to a further 74% potential upside in the stock.
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