Morgan Stanley Eyes Emerging Growth for Grail (GRAL) as Sector Valuations Reach Equilibrium

Core Insights - Grail Inc. is recognized as a promising emerging technology stock, with Morgan Stanley initiating coverage at an Equal Weight rating and raising the price target from $85 to $110, reflecting optimism in the Life Science sector and its growth drivers [1] Financial Performance - In Q3 2025, Grail reported a 26% year-over-year revenue increase to $36.2 million, primarily driven by the Galleri multi-cancer early detection test, which saw a 29% rise in screening revenue to $32.8 million [2] - The company sold over 45,000 Galleri tests during the quarter, marking a 39% increase in volume compared to the previous year [2] - Non-GAAP adjusted gross margins improved significantly to 55%, up from 41% in Q3 2024, despite a net loss of $89 million for the quarter, which was a 29% improvement over the previous year [2] Clinical Developments - Clinical milestones included positive data from the PATHFINDER 2 and SYMPLIFY studies, indicating that adding Galleri to standard screenings resulted in a sevenfold increase in cancer detection rates with a specificity of 99.6% [3] - Long-term follow-up from the SYMPLIFY study increased the test's positive predictive value to 84.2%, as many initial false positives were later confirmed to have cancer at the predicted sites [3] - Grail announced a new partnership with Samsung to commercialize the Galleri test in South Korea, Japan, and Singapore [3]