Certara stock holds as JMP maintains Market Perform rating

Published 06/05/2025, 14:54
Certara stock holds as JMP maintains Market Perform rating

Tuesday, Certara Inc . (NASDAQ:CERT) maintained its Market Perform rating from JMP Securities following the company’s first-quarter earnings report. According to InvestingPro data, the company’s stock has experienced significant volatility recently, with a 8% decline over the past week despite a strong 20% gain year-to-date. The report, released after the market closed on Monday, showed that Certara achieved a revenue of $106.0 million. This figure represents a 10% year-over-year increase and a 4% organic growth compared to the previous year. These results were slightly above the JMP analyst’s estimate of $103.4 million and the consensus of $105.1 million. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value calculations.

The company’s adjusted EBITDA for the quarter was reported at $34.8 million, showing a 20% increase year-over-year. This performance surpassed both the analyst’s estimate of $32.9 million and the consensus of $33.7 million. Certara’s financial results were within the range of their previous guidance, which projected adjusted EBITDA to be between $33 million and $35 million. InvestingPro data reveals the company maintains a healthy financial position with a current ratio of 2.13, indicating strong liquidity, and operates with a moderate debt level.

Certara, a global leader in biosimulation with a market capitalization of $1.93 billion, has consistently provided software and scientific consulting services to streamline drug discovery and development. The company’s performance this quarter reflects its continued commitment to enabling efficiency in the pharmaceutical industry. While currently not profitable over the last twelve months, InvestingPro analysts expect the company to return to profitability this year, with four analysts recently revising their earnings estimates upward. For deeper insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks including Certara.

The JMP analyst, Constantine Davides, affirmed the Market Perform rating after considering the latest financial data. The rating suggests that the analyst believes the stock will perform in line with the overall market. This assessment follows Certara’s disclosure of its first-quarter financials, which met preliminary expectations and showed solid year-over-year growth.

Investors and market watchers will continue to monitor Certara’s performance as it progresses through the fiscal year, with particular attention to how its financial results align with industry performance and broader market trends.

In other recent news, Certara Inc. reported impressive financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.14, exceeding the forecasted $0.11, and recorded a total revenue of $106 million, which was above the projected $104.84 million. Certara also announced a $100 million share repurchase program, indicating strategic financial maneuvers to enhance shareholder value. The company’s performance was driven by significant demand for its biosimulation and software solutions, along with strategic investments in AI and product innovation. Certara’s software revenue increased by 18%, reaching $46.4 million, while services revenue grew by 4%, totaling $59.6 million. The firm maintained a positive outlook for the rest of 2025, projecting full-year revenue between $415 million and $425 million. Analysts from firms such as Leerink Partners and Baird showed interest in Certara’s developments, particularly in its Non-Animal Navigator (ELI:NVGR) and AI applications in biosimulation. These recent developments reflect Certara’s strategic focus on expanding its AI capabilities and biosimulation offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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