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On Tuesday, KeyBanc Capital Markets maintained its Overweight rating and $33.00 price target for BioLife Solutions (NASDAQ:BLFS). The firm's confidence in the company is bolstered by the recent appointment of Tony Hunt to the Board of Directors, effective January 2, 2025. KeyBanc views Hunt's addition as a positive step for BLFS's expansion into new markets and the potential for increased growth visibility.
Hunt's experience in asset development through acquisitions and channel growth is seen as particularly valuable as BioLife Solutions looks to capitalize on its dominant position in the high-growth sectors of freeze media for cell, gene, and CAR-T therapies. Following the sale of CBS and SciSafe, BioLife Solutions is now in a strong financial position with approximately $80 million in cash from these transactions and an estimated cash balance of around $130 million at the end of 2024.
KeyBanc anticipates that BioLife Solutions' CEO Rod de Greef, together with Hunt, will leverage these funds to further develop the company's core business, especially Sexton. This strategy aligns with KeyBanc's projection of an 18.1% increase in topline growth for the fiscal year 2025 and a 27.9% rise for the fiscal year 2026. Additionally, the firm's adjusted EBITDA estimates are 32.1% for FY25 and 33.6% for FY26, suggesting that potential acquisitions could significantly enhance earnings growth.
Comparing BioLife Solutions to Repligen (NASDAQ:RGEN) Corporation (NASDAQ:RGEN), which trades at 45.8x FY26 EV/EBITDA, KeyBanc suggests that there is room for BioLife Solutions' multiple to expand from its current level of 32.5x. This potential for multiple expansion could further support the stock's performance in the future.
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