Needham maintains Buy on CryoPort stock, keeps $11 target

Wednesday, on the stock market, CryoPort shares (NASDAQ:CYRX) maintained their Buy rating and $11.00 price target according to Needham analysts. Currently trading at $5.65, the stock sits well below analysts’ target range of $6.50 to $15.00, though InvestingPro data shows significant price volatility over the past year. The affirmation of the stock’s rating and target comes as CryoPort prepares to report its CryoPDP business as discontinued operations in the first quarter of 2025 and anticipates the closure of the related deal around mid-second quarter of 2025.

Needham analysts highlighted that the transaction is expected to have minimal tax implications. During Needham’s 24th Annual Healthcare Conference, CryoPort’s management provided insights into their financial guidance, suggesting that the MVE business is projected to perform similarly to the revenue trends observed in 2024, with potential for additional growth. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 5.29, though profitability remains a challenge.

Following these insights, Needham analysts have adjusted their financial model for CryoPort, removing CryoPDP from the company’s continuing operations and slightly lowering the revenue estimates for MVE. Despite the decreased estimates, the analysts factored in the pro forma cash that will be added to CryoPort’s balance sheet from the sale of CryoPDP.

As a result of these adjustments, the overall impact on CryoPort’s valuation has been neutral, allowing the price target to remain unchanged at $11.00. The updated model, which includes these modifications, is available for review, providing a detailed analysis of the financial expectations for CryoPort. For deeper insights into CryoPort’s financial health and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.

In other recent news, CryoPort Inc. has announced a strategic partnership with DHL Group following DHL’s acquisition of CRYOPDP, a courier service specializing in clinical trials and biopharma logistics. The acquisition aims to enhance DHL’s capabilities in the life sciences and healthcare sectors, with CRYOPDP’s expertise expected to bolster DHL’s Pharma Specialized Network. This partnership will enable CryoPort to expand its reach into growth markets such as the Asia Pacific and EMEA regions. KeyBanc Capital Markets maintained a Sector Weight rating on CryoPort, as the company also announced the sale of its CRYOPDP business to DHL for approximately $195 million. This transaction is expected to significantly transform CryoPort’s balance sheet, potentially allowing the company to pay down substantial debt. UBS analysts have raised CryoPort’s price target to $11, maintaining a Buy rating, citing the company’s focus on cell and gene therapy services as a growth driver. The sale of CRYOPDP aligns with CryoPort’s strategic focus on its core CGT services, which are anticipated to support sustained growth and positive cash flow. Meanwhile, Westport Fuel Systems (NASDAQ:WPRT) Inc. has filed its management proxy materials with the SEC in preparation for an upcoming shareholder meeting, adhering to standard corporate governance practices.

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