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Monday, Canaccord Genuity sustained its optimistic outlook on Vericel Corporation (NASDAQ:VCEL), raising the price target on the shares from $64 to $67 while reaffirming a Buy rating. The adjustment follows Vericel’s recent preannouncement of its Q4 2024 results, along with its guidance for 2025 and mid-range targets. The stock has shown remarkable momentum, delivering a 36.49% return over the past year and currently trading near its 52-week high of $61.99. InvestingPro analysis reveals 13 additional key insights about VCEL’s performance and valuation metrics.
The firm’s analyst, Caitlin Cronin, cited the strong mid-term targets related to margins and profitability as the primary reasons for the increased price target. The company maintains a healthy gross profit margin of 71.47% and has demonstrated strong revenue growth of 22.48% in the last twelve months. Canaccord’s new target is grounded on a 9.2x enterprise value to sales (EV/Sales) multiple, which represents a 65% premium compared to the average of a comparable group of high-growth MedTech companies, excluding the highest and lowest figures.
Cronin’s analysis is based on Vericel’s projected revenue for 2026, which is estimated to reach $352.6 million. The analyst’s positive stance on the stock is a reflection of the company’s promising financial prospects and its ability to outperform within its sector. InvestingPro data shows the company maintains strong financial health with a current ratio of 4.61, indicating robust liquidity. Get access to the comprehensive Pro Research Report for deeper insights into VCEL’s growth trajectory and financial metrics.
Vericel Corporation specializes in creating products for the repair of cartilage defects in the knee and skin grafts for burns. The company’s focus on these niche medical technologies has positioned it within a subset of the MedTech industry that is experiencing rapid growth.
The price target update from Canaccord Genuity is likely to be well-received by investors who track analyst ratings and projections as part of their investment strategy. The firm’s continued Buy rating suggests confidence in Vericel’s growth trajectory and operational efficiency.
In other recent news, Vericel Corporation’s preliminary Q4 revenue fell short of expectations, with total revenue landing between $75.2 million and $75.7 million, below the estimated $77.9 million. Despite the overall shortfall, the company’s MACI product generated between $68.2 million and $68.7 million in revenue, surpassing analyst estimates. Conversely, preliminary Epicel and NexoBrid revenues were lower than estimated. Looking ahead, Vericel projects total revenue growth of 20-23% for fiscal year 2025. The company has received positive attention from H.C. Wainwright, Truist Securities, TD Cowen, and Canaccord Genuity, with these firms either reaffirming their buy ratings or upgrading their price targets for the company’s shares. These recent developments indicate a robust financial health and promising outlook for Vericel, despite some revenue shortfalls.
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