Canaccord Genuity lowers Vericel stock price target to $58 on burn care outlook

Published 31/07/2025, 19:08
Canaccord Genuity lowers Vericel stock price target to $58 on burn care outlook

Investing.com - Canaccord Genuity has reduced its price target on Vericel Corporation (NASDAQ:VCEL) to $58.00 from $61.00 while maintaining a Buy rating on the regenerative medicine company’s stock. The stock, currently trading near its 52-week low of $34.87, has seen significant analyst interest with targets ranging from $49 to $67, according to InvestingPro data.

The adjustment follows Vericel’s latest quarterly results, which showed mixed performance across its product lines. The company beat bottom-line expectations but slightly missed revenue targets for its MACI product, while Epicel generated lower-than-anticipated revenue despite achieving the highest number of biopsies in any quarter since 2023. InvestingPro analysis shows the company maintains strong financial health with a "GOOD" overall rating and impressive liquid assets exceeding short-term obligations with a current ratio of 5.01.

Vericel has revised its burn care expectations for the remainder of the year, projecting a quarterly run rate of $10 million, which reflects both the second quarter 2025 and 2024 run rates. The company noted a recent higher ratio of canceled cases influenced this more conservative guidance.

For its MACI product line, Vericel reported the second-highest number of biopsies in any quarter since launch, with biopsy growth rates exceeding implant growth rates in the first half of 2025. The company expects implant growth to converge with biopsy growth as it moves into the second half of 2025, with July already showing accelerated growth in both metrics compared to the first half. This growth contributes to the company’s strong revenue performance, with a 14.8% year-over-year increase and an impressive gross profit margin of 72.54%, as revealed in InvestingPro’s detailed financial analysis. Subscribers can access 10+ additional ProTips and comprehensive metrics in the Pro Research Report.

Vericel plans a full MACI sales force expansion this year to support its seasonally strong fourth quarter, while potential upside exists in burn care from both commercial execution and a possible BARDA RFP win that could generate incremental fourth-quarter Nexobrid revenue.

In other recent news, Vericel Corporation announced its Q2 2025 earnings, showing a narrowed net loss alongside a significant revenue increase. The company reported an earnings per share (EPS) loss of $0.01, which surpassed analysts’ projections of a $0.03 loss. However, revenue figures slightly missed expectations, coming in at $63.24 million compared to the anticipated $64.61 million. Despite these financial results, Vericel’s stock experienced a decline in pre-market trading. The developments reflect mixed outcomes for the company, with better-than-expected earnings but a shortfall in revenue. Investors may find these results informative as they assess Vericel’s financial performance and future prospects.

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