Leerink Partners analyst Puneet Souda has reiterated their neutral stance on CYRX stock, giving a Hold rating on May 3.
Puneet Souda’s rating is based on a confluence of concerns and caution due to CryoPort’s recent performance and future uncertainties. Despite the company’s reaffirmation of its 2024 guidance, the first quarter earnings fell short of expectations, with revenues at $54.6 million against the consensus of $58.8 million. This underperformance signals a challenging growth trajectory for the second half of the year, especially since significant revenue sources like commercial therapies are yet to demonstrate a robust upside. Moreover, the company’s Material Verification Equipment (MVE) segment, which accounts for a substantial portion of sales, experienced a lower-than-expected performance and continues to face headwinds from market conditions in China and overall biotech spending.
Another factor influencing the Hold rating is the 22 net trial cancellations observed in the clinical services segment, which raises concerns about the company’s ability to meet its full-year guidance. The lack of new trial additions this quarter, compared to previous quarters, indicates persisting difficulties in CryoPort’s market. Additionally, historical misses in prior quarters have added to the apprehension, suggesting it may take several more quarters before investor confidence can be restored regarding the resolution of challenges in key markets like China and biotech spending. Until clearer signs of recovery in the MVE and CryoPDP segments, which together represent a significant majority of CryoPort’s sales, are evident, maintaining a Hold position reflects a prudent and watchful approach.
In another report released on May 3, B.Riley Financial also downgraded the stock to a Hold with a $19.00 price target.
CYRX’s price has also changed dramatically for the past six months – from $10.380 to $16.400, which is a 58.00% increase.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
CryoPort (CYRX) Company Description:
CryoPort, Inc. engages in the provision of logistics solutions to the life science industry. It also provides logistics solutions for biologic materials such as immunotherapies, stem cells, CAR-T cells, and reproductive cells for clients worldwide, including points-of-care, clinical research organizations central laboratories, biopharmaceuticals, contract manufacturing, health centers, and university researchers. It offers personalized medicine, immunotherapies, cellular therapies, CAR T-cell therapies, stem cell therapies, cell lines, vaccines, diagnostic materials, semen, eggs, embryos, cord blood, bio-pharmaceuticals, infectious substances, and other commodities that require continuous exposure to certain ranges of precision-controlled temperatures. The company was founded on May 25, 1990 and is headquartered in Irvine, CA.
Read More on CYRX:
