Analyst Mike Kratky of Leerink Partners reiterated a Buy rating on Vericel (VCEL – Research Report), with a price target of $44.00.
Mike Kratky gave a Buy rating to Vericel’s stock based on several factors. He increased the price target for VCEL to $44 from $42 following a beat-and-raise quarter in 3Q23, indicating a promising setup for the stock in 2024 and beyond. This decision was backed by the management’s commentary during the earnings call, resulting in slightly higher MACI revenue estimates for 2024 and 2025. Additionally, the expectation of double-digit growth in surgeons taking MACI biopsies in 2023 further strengthened the stock’s position.
The attractive aspects of VCEL include its high-growth MedTech story, the leading commercial product MACI, which is expected to deliver durable double-digit sales growth, and the expected launch of arthroscopic delivery of MACI in 1H24. Furthermore, Kratky sees a clear path to profitability for Vericel starting in 2024 and appreciates its minimal exposure to GLP-1s, which serves as a defensive option within the MedTech coverage universe. Additionally, Vericel reported 3Q23 revenue of $45.6 million, which was above the consensus estimates, driven by a combination of NexoBrid and MACI. The management also raised their previously issued FY23 guidance, further reinforcing Kratky’s positive outlook on VCEL.
According to TipRanks, Kratky is an analyst with an average return of -3.9% and a 35.71% success rate. Kratky covers the Healthcare sector, focusing on stocks such as Insulet, Intuitive Surgical, and Shockwave Medical.
In another report released yesterday, H.C. Wainwright also maintained a Buy rating on the stock with a $44.50 price target.
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Vericel (VCEL) Company Description:
Vericel Corp. engages in the research, product development, manufacture, and distribution of patient-specific, expanded cellular therapies for use in the treatment of patients with diseases. Its product portfolio includes MACI and Epicel. The MACI portfolio is FDA-approved product that applies the process of tissue engineering to grow cells on scaffolds using healthy cartilage tissue from the patient’s own knee. The Epicel portfolio provide skin replacement for patients who have deep dermal or full thickness burns. The company was founded on March 24, 1989 and is headquartered in Cambridge, MA.
Read More on VCEL:
- Vericel Reports Third Quarter 2023 Financial Results and Raises Full-Year 2023 Financial Guidance
- Vericel raises 2023 revenue view $192.5M-$197.5M from $190M-$197M
- Vericel reports Q3 EPS (8c), consensus (12c)
- Vericel to Present at the Stephens Annual Investment Conference
- Is VCEL a Buy, Before Earnings?
