Analyst Caitlin Cronin of Canaccord Genuity maintained a Buy rating on Vericel (VCEL – Research Report), retaining the price target of $61.00.
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Caitlin Cronin’s rating is based on the promising outlook for Vericel’s MACI Arthro technique, which is expected to enhance the company’s market position. The new technique has shown positive early outcomes, leading to quicker procedure times and improved patient recovery, which are likely to encourage surgeons to adopt it over the traditional MACI Open approach. This innovation not only strengthens Vericel’s competitive edge but also opens up opportunities for increased market penetration.
Additionally, the MACI Arthro technique is anticipated to expand Vericel’s reach among arthroscopic surgeons who previously avoided the open technique, potentially adding around 2,000 surgeons to their target base. The conversion rates from biopsy to implantation surgeries might see a modest increase as patients recognize the benefits of the Arthro approach. Furthermore, there is potential for greater use in specific knee areas that were not well-served by the previous technique. These factors collectively support a positive growth trajectory for Vericel, justifying the Buy rating.
Cronin covers the Healthcare sector, focusing on stocks such as Stryker, Zimmer Biomet Holdings, and Bioventus. According to TipRanks, Cronin has an average return of 0.3% and a 47.25% success rate on recommended stocks.