Certara (CERT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Brendan Smith from TD Cowen maintained a Buy rating on the stock and has a $16.00 price target.
Brendan Smith has given his Buy rating due to a combination of factors including Certara’s strong financial performance in the first quarter and its promising future prospects. The company reported a notable increase in revenue, particularly in its software segment, which saw an 18% year-over-year growth. This growth is attributed to the rising demand for Certara’s biosimulation software, driven by recent regulatory changes and advancements in AI technologies.
Management’s confidence in maintaining its financial guidance for FY25 further supports the Buy rating. The reiterated guidance reflects expected revenue growth and stable EBITDA margins, indicating a robust business outlook. Additionally, the ongoing discussions about divesting the regulatory services division and the increased customer interest following FDA updates are seen as potential catalysts for future growth, reinforcing the positive sentiment around Certara’s stock.