Sequans Communications reports second quarter revenue flat at $8.1 million
On Thursday, Canaccord Genuity analysts maintained their Buy rating on Vericel Corporation stock (NASDAQ:VCEL), setting a price target of $61.00. Currently trading at $43.17 with a market capitalization of $2.17 billion, VCEL has demonstrated strong revenue growth of 14.8% over the last twelve months. This latest rating decision follows recent discussions with doctors regarding the launch of the MACI Arthro technique, which has shown promising early results.
The analyst team highlighted that the doctors they consulted are optimistic about the MACI Arthro launch and its associated instrumentation and technique. They observed positive early outcomes for patients and noted quicker procedure times, suggesting a potential shift from MACI Open procedures to the new technique.
While the transition from MACI Open to MACI Arthro might not immediately drive growth, the analysts believe the new technique strengthens MACI’s position against existing and future cartilage repair technologies. According to InvestingPro data, Vericel maintains a strong financial health score and impressive liquidity, with current assets exceeding short-term obligations by 5 times. The Arthro technique could enhance MACI growth by increasing patient conversion rates from biopsy to implantation and attracting arthroscopic surgeons who haven’t used MACI due to its legacy open technique.
The analysts also see potential for MACI Arthro to expand MACI’s market share, particularly in areas of the knee where MACI has been less prevalent. They anticipate that these positive indicators will be supported by Vericel’s upcoming MACI salesforce expansion.
Canaccord Genuity’s reaffirmation of the Buy rating reflects confidence in the MACI Arthro’s potential to contribute to Vericel’s growth, as indicated by the early feedback from medical professionals. While InvestingPro analysis suggests the stock is currently trading above its Fair Value, subscribers can access 10+ additional ProTips and comprehensive valuation metrics in the Pro Research Report, helping investors make more informed decisions about this high-margin business (72.54% gross margin).
In other recent news, Vericel Corporation reported its first-quarter 2025 earnings, revealing a total net revenue of $52.6 million. This figure, while a record for the company, came in slightly below the forecast of $53.84 million. The company experienced a net loss of $11.2 million, or $0.23 per share, which was wider than the anticipated loss of $0.1338 per share. Despite these results, Vericel has revised its full-year revenue growth guidance upward to 20-23%, reflecting confidence in future performance, particularly from its MACI segment. Truist Securities maintained a Buy rating on Vericel, with a price target of $52, following meetings with the company’s management. The discussions highlighted Vericel’s growth potential, particularly in its MACI and burn care products, and the analysts expressed optimism about the company’s ability to achieve over 20% revenue growth in the coming years. Vericel’s strategic focus on expanding its sales force and enhancing product offerings is expected to support this growth trajectory. These developments underscore Vericel’s efforts to strengthen its market position and drive long-term profitability.
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