Rothschild Redburn initiates Certara stock with Buy rating on biosimulation leadership

Published 21/11/2025, 10:10
Rothschild Redburn initiates Certara stock with Buy rating on biosimulation leadership

Investing.com - Rothschild Redburn initiated coverage on Certara Inc. (NASDAQ:CERT) with a Buy rating and a $10.00 price target on Friday. This target represents a 25% upside from the current price of $8.03, with Certara trading near its 52-week low. According to InvestingPro data, the stock appears undervalued based on Fair Value estimates.

The research firm identified Certara as the leader in biosimulation, which models drug interactions in the body. This technology can aid in discovering potential drug targets, reduce early-stage clinical work requirements, and accelerate both early and late-stage clinical development.

Certara’s products and services are widely used across the biopharma industry by both large pharmaceutical companies and biotechs. The firm’s technology has supported the approval of over 125 products, including multiple blockbuster drugs. This wide adoption has contributed to Certara’s 11.47% revenue growth over the last twelve months, with analysts expecting continued growth this year.

The company’s main pharmacokinetic modeling products, Simcyp and Phoenix, have already achieved significant market penetration in clinical phases of drug development. To maintain growth, Certara needs to increase its presence in discovery and pre-clinical phases.

Rothschild Redburn noted that Certara’s 2024 acquisition of Chemaxon strengthens its position in these earlier development stages, enabling better cross-selling opportunities for Simcyp and the newly launched CertaraIQ platform for quantitative system pharmacology, which helps identify drug targets and assess dosing. With RSI indicating oversold territory and analysts setting price targets as high as $16, InvestingPro offers a comprehensive research report on Certara, one of 1,400+ US equities covered with in-depth analysis and actionable insights.

In other recent news, Certara Inc . reported its third-quarter 2025 earnings, slightly exceeding analyst expectations. The company announced an earnings per share (EPS) of $0.11, just above the forecasted $0.1099. Revenue for the quarter was $104.6 million, marginally surpassing the anticipated $104.64 million. These developments indicate a minor earnings beat for Certara, despite the close alignment with projections. The earnings announcement, however, did not prevent a decline in the company’s stock during after-hours trading. No mergers or acquisitions were reported in the recent updates. Additionally, there were no analyst upgrades or downgrades mentioned in the latest news. Investors may find these earnings and revenue figures significant as they evaluate Certara’s financial performance. The company continues to release information pertinent to its stakeholders.

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