In a report released today, Ryan Zimmerman from BTIG assigned a Buy rating on Vericel (VCEL – Research Report), with a price target of $41.00.
Ryan Zimmerman’s Buy rating for Vericel (VCEL) is based on a variety of factors, primarily stemming from the company’s growth potential and the distinct profiles of its products. Firstly, Zimmerman highlights how Vericel’s MACI product is set to experience growth acceleration in FY24 and beyond, driven by the launch of NexoBrid and the anticipated launch of arthroscopic MACI. This is expected to provide a significant boost to the company’s growth in the latter part of FY24 and onwards.
Another crucial factor in Zimmerman’s recommendation is the distinct patient profiles for Vericel’s MACI and CartiHeal’s Agili-C. MACI is primarily used for acute cartilage injuries, while Agili-C is likely to be viewed as a treatment option for cartilage damage in tandem with osteoarthritis. Zimmerman notes that the bulk of MACI sales are in the patella, an area not targeted by Agili-C, indicating that existing MACI sales are unlikely to be negatively impacted. Zimmerman also underlines the valuation of VCEL with a $41 price target, based on 7x the estimated 12-24 month revenue estimate of $259.5M, which is a 1x premium to peers, reflecting VCEL’s slightly higher 3-year revenue CAGR.
Zimmerman covers the Healthcare sector, focusing on stocks such as Glaukos, Vericel, and Organogenesis Holdings. According to TipRanks, Zimmerman has an average return of 3.0% and a 38.54% success rate on recommended stocks.
In another report released on November 9, 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 price target raised to $39 from $33 at Truist
- 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
