In a report released on February 27, Mike Kratky from Leerink Partners reiterated a Buy rating on Vericel (VCEL – Research Report), with a price target of $64.00.
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Mike Kratky has given his Buy rating due to a combination of factors that highlight Vericel’s strong growth potential and financial performance. The company’s core MACI business is demonstrating robust growth, with a significant increase in MACI sales and the number of MACI implants and trained surgeons. This growth is further supported by the expanding base of MACI Arthro-trained surgeons, which presents additional opportunities for revenue enhancement.
Moreover, Vericel’s Burn Care franchise, despite its variability, shows promising trends with the adoption of NexoBrid and cross-selling opportunities that could bolster the uptake of Epicel. The company’s financial metrics, including a high gross margin and a strong adjusted EBITDA margin, underscore its profitability. Overall, Kratky sees an attractive risk/reward scenario for Vericel, driven by these growth factors and the potential for margin expansion.
Kratky covers the Healthcare sector, focusing on stocks such as Dexcom, Inspire Medical Systems, and NeuroPace. According to TipRanks, Kratky has an average return of 23.6% and a 60.00% success rate on recommended stocks.
In another report released on February 28, Citi also maintained a Buy rating on the stock with a $60.00 price target.