Hold Rating for Maravai Lifesciences Holdings Amid Revenue Challenges and Uncertainty in CleanCap Orders

Morgan Stanley analyst Tejas Savant maintained a Hold rating on Maravai Lifesciences Holdings (MRVI – Research Report) yesterday and set a price target of $5.00.

Tejas Savant has given his Hold rating due to a combination of factors affecting Maravai Lifesciences Holdings. The company reported a modest beat in its first-quarter revenue, primarily driven by better-than-expected results in its BST segment and a strong performance in China. However, the lack of high-volume CleanCap orders significantly impacted the NAP segment, resulting in a year-over-year decline in revenue.
Despite the modest revenue beat, the company’s gross margin fell short of expectations due to an unfavorable product mix in the NAP segment. Additionally, the adjusted EBITDA was negative, reflecting the challenges posed by sluggish top-line growth and a high fixed cost base. While there are encouraging signs from investments and new initiatives, the absence of binding commitments from high-volume CleanCap customers and the need for sustained recovery in top-line performance contribute to the Hold rating.

In another report released on May 13, Robert W. Baird also maintained a Hold rating on the stock with a $2.00 price target.

MRVI’s price has also changed dramatically for the past six months – from $4.820 to $2.400, which is a -50.21% drop .