Cautious Outlook for Maravai Lifesciences Amid Profitability Challenges and Transitional Changes

William Blair analyst Matt Larew has maintained their neutral stance on MRVI stock, giving a Hold rating today.

Matt Larew has given his Hold rating due to a combination of factors impacting Maravai Lifesciences Holdings. The company experienced a slight top-line beat, largely driven by Biologics Safety Testing, but faced ongoing profitability challenges as non-COVID revenue continued to decline for the ninth consecutive quarter. Despite recent investments aimed at enhancing and diversifying its offerings, the lack of growth in the core business remains a concern.
Maravai’s strategic efforts to vertically integrate its supply chain and improve margins are expected to bear fruit as the top line potentially returns to growth, anticipated in the latter half of 2025. However, 2025 is seen as a transitional period marked by significant operational changes and persistent macroeconomic challenges, such as funding constraints for discovery research, particularly in mRNA. With the stock trading at 3.1 times the 2025 sales estimate, Larew maintains a Market Perform stance, indicating a cautious outlook amid these uncertainties.

Larew covers the Healthcare sector, focusing on stocks such as Repligen, Maravai Lifesciences Holdings, and 908 Devices. According to TipRanks, Larew has an average return of -4.3% and a 47.92% success rate on recommended stocks.

In another report released today, Robert W. Baird also maintained a Hold rating on the stock with a $2.00 price target.