CSTL delivered good Q1 beat, raised the guide, and feels good about its Atopic Derm Test in its early launch - Buy, trim PT from $50 to $40

Research evidence excerpt

CSTL delivered good Q1 beat, raised the guide, and feels good about its Atopic Derm Test in its early launch - Buy, trim PT from $50 to $40

May 12, 2026 Castle Biosciences, Inc.LIFE

(CSTL, Buy, $40 PT)

Mark Massaro

CSTL delivered good Q1 beat, raised the guide, and feels good about its (212) 527-3564 mmassaro@btig.comSCIENCE Atopic Derm Test in its early launch - Buy, trim PT from $50 to $40 Company Data

Closing Price $18.63

WHAT YOU SHOULD KNOW: CSTL delivered a solid 10% revenue beat in Q1 on the Price Target $40.00AND back of robust +58% and +16% Y/Y volume growth in TissueCypher and its DecisionDx- Market Cap (M) $556.83 Melanoma test, respectively, both ahead of our forecast. We are encouraged that CSTL

raised its 2026 revenue guide, and CSTL now expects its TissueCypher test to approach Enterprise Value (M) $316.53

50% volume growth for the year. CSTL is seeing positive activity build with its new Shares Out (M) 29.89

Atopic Derm test, which we think meets an unmet clinical need. CSTL sees multiple Avg Daily Vol-3 Months (M) 0.4

areas to expand investments into its business this year, including in sales, marketing Dividend / Yield $0.00 / 0.0%

and new product development, and we did bump up our OPEX estimates for the year.

Revisions We remain hopeful that the company can regain Medicare coverage of its SCC test,DIAGNOSTIC

and we expect to get an update from CMS later this year. Shares of CSTL now trade Previous Current

at less than 1x our 2026 revenue estimate of $351M, well below historical peers of Rating Buy Buy

~3-7x. We think asymmetric upside remains in shares of CSTL, SCC has been priced out Price Target $50.00 $40.00TOOLS of the stock for some time now, and we think shares of CSTL could benefit further from FY26E REV 346.00 351.00

multiple expansion.