Barclays raises Certara stock rating, hikes PT to $14

On Thursday, Barclays (LON:BARC) analyst Luke Sergott upgraded Certara Inc . (NASDAQ:CERT) stock rating from Equal Weight to Overweight and increased the price target to $14.00, up from the previous mark of $11.00. Currently trading at $11.46 with a market cap of $1.86 billion, the stock has shown resilience with a 7.6% gain year-to-date despite recent volatility. Sergott highlighted Certara’s strong performance amidst the headwinds faced by other contract research organizations (CROs) and tools companies. The company’s recent quarterly results showed a beat on all fronts, with bookings growing by 12%. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimate.

The analyst pointed out that Certara is benefiting from early positive responses to its non-animal navigator offering, particularly after the FDA’s April announcement regarding the phasing out of animal testing for monoclonal antibodies (mAbs). Sergott noted that Certara’s simulation modeling, which is utilized in the early stages of drug discovery, places the company in a favorable position to capitalize on the industry’s shift away from animal models. The company maintains a strong financial position with a healthy current ratio of 2.78 and operates with moderate debt levels, according to InvestingPro data.

Sergott also commended Certara’s management for effectively expanding the company’s portfolio across the clinical workflow. As pharmaceutical companies maintain tighter budgets, Certara’s software has contributed to cost savings by reducing the time and expenses associated with traditional, more labor-intensive methods.

Looking ahead, Sergott expressed confidence in Certara’s ability to maintain its momentum throughout the year. He anticipates potential acceleration in the business’s performance in the second half of the year and into 2026. Certara’s strategic positioning and effective execution were underscored as key factors in the upgraded rating and higher price target.

In other recent news, Certara Inc. reported strong financial results for the first quarter of 2025, with a revenue of $106 million, marking a 10% year-over-year increase. The company’s earnings per share (EPS) of $0.14 exceeded analyst projections of $0.11, showcasing a robust financial performance. Certara’s adjusted EBITDA reached $34.8 million, representing a 33% margin, and the company announced a $100 million share repurchase program. JMP Securities maintained a Market Perform rating for Certara, indicating expectations for the stock to perform in line with the overall market. The company’s strategic focus includes expanding its AI capabilities and biosimulation offerings, as well as advancing its integration into earlier drug development stages. Certara also highlighted the FDA’s recent announcement to phase out animal testing, which could present new opportunities for the company’s biosimulation services. The company continues to see strong demand for its software and services, with significant year-over-year growth in both areas. Certara’s financial outlook for the remainder of 2025 remains positive, with projected full-year revenue between $415 million and $425 million.

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