Vericel, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Josh Jennings from TD Cowen maintained a Buy rating on the stock and has a $55.00 price target.
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Josh Jennings has given his Buy rating due to a combination of factors, despite Vericel’s recent performance falling slightly short of expectations. The company’s core MACI franchise demonstrated robust growth, with a 21% increase in revenue, which, although slightly below guidance, shows strong market demand and potential for future expansion. Additionally, the number of MACI biopsies nearly matched the highest quarterly results, indicating sustained interest and adoption.
Furthermore, Vericel’s efforts in training surgeons for its Arthro offering have shown progress, with a significant increase in trained professionals, suggesting a promising future for this segment. The company’s adjusted EBITDA also exceeded expectations, reflecting improved operational efficiency. Coupled with a healthy cash balance, these elements contribute to the confidence in Vericel’s ability to achieve its revenue guidance for 2025, justifying the Buy rating.