Morgan Stanley analyst Vikram Purohit maintained a Hold rating on Certara (CERT – Research Report) today and set a price target of $16.00.
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Vikram Purohit has given his Hold rating due to a combination of factors that reflect Certara’s current financial and strategic position. The company’s recent earnings update for the first quarter of 2025 did not significantly alter the existing financial outlook, as the results were pre-announced, leading to minimal changes in revenue projections. Purohit maintains a 6.5x enterprise value to sales multiple on the 2025 revenue estimate of $420 million, indicating a stable yet cautious perspective on the company’s valuation.
Additionally, Certara’s management has reiterated its guidance for fiscal year 2025, with revenues, adjusted diluted earnings per share, and adjusted EBITDA remaining consistent with previous expectations. The analyst is also monitoring potential strategic developments, particularly regarding Certara’s regulatory services business and the implications of the FDA’s move towards reducing animal testing. These factors, combined with the company’s current market position, contribute to the decision to maintain a Hold rating.