KeyBanc maintains BioLife stock Overweight, $33 target

On Monday, KeyBanc Capital Markets reaffirmed its confidence in BioLife Solutions (NASDAQ:BLFS), maintaining an Overweight stock rating and a $33.00 price target. Currently trading at $25.00, the stock has shown strong momentum with a 44% return over the past year, according to InvestingPro data. The firm’s analyst visited the company’s headquarters in Bothell, WA, and came away with a strengthened belief in BioLife’s Cell Processing business, its new product introductions such as CryoCase, and the potential to amplify revenue through the Sexton portfolio.

BioLife Solutions, after selling off non-core assets in 2024, has honed its focus on its primary bio preservation media business, which accounts for approximately 90% of its revenue, and the Sexton/cell processing segment. With current annual revenue of $82.25 million and an impressive 25% five-year revenue CAGR, as reported by InvestingPro, the company is now working on expanding its media capacity to over $200 million, a significant increase from its current capacity of under $90 million. This expansion at the Bothell facility is designed to support customers advancing through the development pipeline and to provide a more comprehensive suite of products.

The analyst highlighted BioLife’s established market position, which was initially propelled by its biopreservation media co-founded by Chief Scientific Officer Dr. Aby J. Matthew. The company’s growth has been sustained by the proven efficacy of its media, its specification into both commercial and clinical applications, and a deep understanding of the complex cell and gene therapy (CGT) market requirements. The meeting proved timely as BioLife enters fiscal year 2024 with a stronger financial position, boasting $94 million in net cash, approximately 95% recurring revenue, and 19% adjusted EBITDA margins. This is a marked improvement from the previous fiscal year, which reported $32 million in net cash, around 65% recurring revenue, and a -4% adjusted EBITDA margin. InvestingPro analysis shows the company maintains a strong financial health score of 2.6 (rated as "GOOD"), with a robust current ratio of 4.54x indicating excellent liquidity.

KeyBanc’s visit also allowed them to observe BioLife’s ongoing operations, including the biopreservation media and Sexton portfolio, which now features the new CellSeal CryoCase. The firm now has greater conviction in BioLife’s ability to market end-to-end solutions to its existing customer base, potentially increasing revenue by 2-3 times per patient dose. With internal product offerings, a skilled management team, and the recent board addition of Tony Hunt from Repligen (NASDAQ:RGEN), BioLife is well-positioned to achieve its long-term organic growth target in the mid-20% range. Moreover, KeyBanc anticipates that BioLife will capitalize on overall growth trends in the industry, such as the estimated ~35% CAR-T growth rate through 2030, as projected by Evaluate Pharma. Based on InvestingPro’s Fair Value analysis, the stock appears overvalued at current levels. Subscribers can access 7 additional ProTips and a comprehensive Pro Research Report for deeper insights into BioLife’s growth potential and market position.

In other recent news, BioLife Solutions reported robust financial results for the fourth quarter of 2024, with revenue reaching $22.7 million, surpassing analyst estimates. The company posted a net loss of $2.0 million, or ($0.04) per share, which was smaller than the anticipated loss. BioLife’s Cell Processing segment experienced a 37% year-over-year increase in revenue, marking its fifth consecutive quarter of growth. For the full year of 2024, total revenue was $82.3 million, excluding discontinued operations, with a net loss of $11.4 million.

Looking ahead, BioLife expects 2025 revenue to range between $95.5 million and $99.0 million, indicating growth of 16-20%. The company anticipates its Cell Processing revenue to grow by 18-21% in the coming year. H.C. Wainwright raised its price target for BioLife to $30, maintaining a "Buy" rating, while Benchmark also reiterated a "Buy" rating with the same price target. Both firms cited the company’s strong performance and positive future guidance as factors in their assessments. BioLife’s strategic divestitures have allowed it to focus on its high-margin core business, further bolstering its position in the cell and gene therapy market.

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