Certara (CERT) has received a new Hold rating, initiated by Morgan Stanley analyst, Sean Laaman.
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Sean Laaman has given his Hold rating due to a combination of factors influencing Certara’s current market position and future prospects. Certara, a life sciences technology company, reported approximately $385 million in revenue for 2024, with a growth rate of 9% year-over-year. This growth is projected to continue into 2025, with an estimated total revenue of $420 million. Despite this steady growth, the company’s current share price of $11.52 and a price target of $16 suggest limited upside potential in the near term.
Another factor contributing to the Hold rating is the ongoing strategic review of Certara’s regulatory services business, which may impact the company’s operations and growth trajectory. Additionally, the potential shift in the regulatory landscape, with the FDA’s move towards reducing animal testing in favor of new methodologies like computational modeling and AI/ML, presents both opportunities and uncertainties for Certara. These elements combined have led to a cautious approach, resulting in the Hold rating.
CERT’s price has also changed slightly for the past six months – from $10.660 to $11.490, which is a 7.79% increase.