Baird has opened coverage on Grail, Inc. (NASDAQ: GRAL) with an Outperform rating and set a price target of $113.00, which the firm says represents about a 16% upside relative to a cited share price of $97.50. The research note carries a Speculative Risk designation.
Grail is described as a commercial-stage healthcare company focused on multi-cancer early detection through its Galleri test. The test uses a blood draw to screen for more than 50 types of cancer. While the company recorded 20.53% revenue growth over the trailing twelve months, InvestingPro data referenced by the coverage shows Grail is not yet profitable and is operating with negative gross profit margins.
Baird highlighted several upcoming events it sees as meaningful for adoption of the Galleri test. Key catalysts listed in the initiation include the readout from the NHS-Galleri study and a potential FDA decision regarding Galleri. The analyst team models robust top-line expansion in the coming years and characterized the addressable market for multi-cancer early detection as large. The note adds that the firm expects continued growth momentum for Grail until those milestones are resolved.
Investors have a near-term date to watch: Grail’s next earnings report is scheduled for February 19, which the Baird note flagged as only two days away from the reference point of the coverage announcement.
In related developments, Grail reported preliminary fourth-quarter and full-year 2025 results that exceeded analyst estimates and FactSet consensus, according to the information included in the coverage summary. That performance was attributed primarily to a 35% year-over-year increase in Galleri testing volume.
Following the preliminary results, Canaccord Genuity reiterated its Buy rating on Grail and raised its price target to $105, up from a prior $85 target. Canaccord cited notable progress in expanding both adoption and reimbursement for the Galleri multi-cancer early detection test as the rationale for the higher target and for maintaining its Buy stance.
Taken together, the initiation by Baird and the Canaccord update reflect an analyst community watching both commercial adoption metrics and pending clinical and regulatory outcomes closely. The company’s recent volume growth and top-line momentum sit alongside continuing margin and profitability challenges, as noted by the data on negative gross profit margins.
These developments leave investors balancing a view of rapid testing expansion and increasing reimbursement with the financial reality that Grail has yet to reach profitability. The market reaction to the Baird initiation and the Canaccord revision will likely hinge on the timing and content of the NHS-Galleri readout, any FDA communication, and the company’s next reported financials.