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On Wednesday, Stifel analysts adjusted their outlook on MaxCyte Inc. (NASDAQ:MXCT), reducing the price target from $11.00 to $9.00, while still maintaining a Buy rating on the company’s shares. According to InvestingPro data, the stock currently trades at $3.03, near its 52-week low of $3.17, suggesting significant upside potential to analysts’ target range of $6-$9. The revision follows MaxCyte’s pre-announcement of its fourth-quarter results around the time of the J.P. Morgan Healthcare Conference, which did not come as a surprise to the market. Management provided guidance for the year 2025, forecasting core revenue growth of 8-15%, inclusive of contributions from the SeQure Dx acquisition and an additional $5 million in SPL revenues.
The company’s projected revenues fall short of Wall Street expectations, leading analysts to anticipate a decline in MaxCyte’s stock price in the morning trading session. Despite recent headwinds, InvestingPro analysis shows the company maintains strong financial health with a current ratio of 9.81 and more cash than debt on its balance sheet. InvestingPro subscribers have access to 7 additional key insights about MXCT’s financial position. Despite the lower guidance, Stifel analysts see potential for the company to outperform its own forecasts, especially if the end markets show improvement, which is not currently factored into the company’s projections.
The analysts at Stifel believe that the drug development environment has the potential to strengthen throughout 2025. However, they also note that investors may be cautious and prefer to witness tangible signs of market recovery before gaining confidence in the stock. Stifel continues to favor MaxCyte as an investment opportunity, given its involvement in what is expected to be a recovery year for cell therapy. Nevertheless, they caution that the realization of this thesis may progress at a slower pace than initially anticipated. The company has demonstrated solid historical performance with revenue growth of 19.85% over the last twelve months, though InvestingPro data indicates analysts don’t expect profitability this year.
In other recent news, MaxCyte Inc. reported a 6% year-over-year decline in total revenue for 2024, despite a 9% increase in core revenue. The decline was influenced by a significant drop in milestone-based revenue, which faced tough comparisons to the previous year’s payments from Vertex (NASDAQ:VRTX). MaxCyte ended the year with 28 active strategic platform license agreements, anticipating future economic benefits. Looking ahead, the company has projected an 8-15% growth in core revenue for 2025, including contributions from its recent acquisition of SeQure Dx. BTIG analyst Mark Massaro adjusted the price target for MaxCyte to $6.00 from $8.00, maintaining a Buy rating, citing macroeconomic challenges in the biopharmaceutical sector. Meanwhile, MaxSight reported a 45% decline in Q4 2024 revenue, although it exceeded earnings per share expectations. MaxSight projects an 8-15% growth in core revenue for 2025, with the acquisition of SecurDx expected to contribute significantly.
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