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On Tuesday, Maxim Group adjusted its outlook on BioLife Solutions (NASDAQ:BLFS) shares, raising the price target to $34 from the previous $30, while reaffirming its Buy rating on the stock.
The decision comes in response to the company's strategic shift towards its Cell and Gene Therapy tools, which are expected to foster consistent and repeatable business due to their integration into customer therapies.
The Maxim Group analyst highlighted that BioLife Solutions' freezer business had previously been a high-cost, low-margin endeavor that burdened the company's revenue growth and share price performance. However, the company's shares have demonstrated a significant recovery, surging over 60% throughout 2024, following the company's pivot away from these less profitable lines.
BioLife Solutions' refocused strategy on its 'sticky' Cell and Gene Therapy tools has been well received in the market. These products are designed to become essential components of customer therapies, which is anticipated to lead to dependable and recurring revenue streams for the company.
Despite a reduction in revenue and expense projections, Maxim Group anticipates that BioLife Solutions will achieve sustainable top-line growth in 2025. This growth is expected to be accompanied by an expansion in profit margins.
The revised 12-month price target of $34 reflects the firm's confidence in BioLife Solutions' potential for financial improvement and market performance in the coming year.
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