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

Grail Inc. (NASDAQ:GRAL) is one of the best emerging technology stocks to invest in. On December 1, Morgan Stanley assumed coverage of Grail with an Equal Weight rating and a price target of $110, which was up from $85. Heading into 2026, the firm is optimistic about the Life Science space, noting several emerging growth drivers. While the firm likes the industry’s long-term setup, it argued that a recent valuation spike has left stock prices at a reasonable equilibrium.

In Q3 2025, Grail highlighted a 26% year-over-year revenue increase to $36.2 million. This growth was driven by the Galleri multi-cancer early detection test, which saw screening revenue rise 29% to $32.8 million. The company sold over 45,000 Galleri tests during the quarter, representing a 39% increase in volume compared to the prior year. Efficiency gains from its high-throughput platform also helped improve non-GAAP adjusted gross margins to 55%, a significant jump from 41% in Q3 2024. Despite the revenue growth, Grail reported a net loss of $89 million for the quarter, though this was a 29% improvement over the previous year.

Clinical milestones during the quarter included positive data from the PATHFINDER 2 and SYMPLIFY studies. Results showed that adding Galleri to standard screenings led to a sevenfold increase in cancer detection rates with a high specificity of 99.6%. Furthermore, 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 diagnosed with cancer at the site predicted by Galleri. The company also announced a new partnership with Samsung to commercialize the test in South Korea, Japan, and Singapore.

Grail Inc. (NASDAQ:GRAL) is a commercial-stage healthcare company that provides multi-cancer early detection testing and services in the US and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.