Asia FX weakens slightly, rupee recovers from record low as RBI holds rates
Tuesday, UBS analysts raised the price target on CryoPort (NASDAQ:CYRX) shares to $11.00 from $10.00 while reiterating a Buy rating. Currently trading at $6.00, the stock sits well below its 52-week high of $20.11, with a market capitalization of approximately $300 million. The adjustment reflects a positive outlook on the company’s growth potential, particularly in its cell and gene therapy (CGT) service offerings. According to UBS, these services provide CryoPort with a credible path to achieving low-double-digit percentage sales growth and positive free cash flow in the mid- to long-term. InvestingPro analysis reveals additional insights about CryoPort’s potential, with multiple proprietary indicators and metrics available to subscribers.
The recent divestiture of CryoPort’s subsidiary, CryoPDP, has been cited as supportive of UBS’s thesis. The sale of CryoPDP is seen as a strategic move that aligns with the company’s focus on expanding its CGT services. According to InvestingPro data, CryoPort maintains a strong liquidity position with a current ratio of 5.29, while operating with a moderate debt level. UBS analysts have updated their financial estimates to account for this divestiture, leaving their underlying growth forecasts relatively stable.
With the revised estimates, UBS now expects CryoPort’s adjusted earnings per share (EPS) for fiscal years 2025 and 2026 to be ($1.00) and ($0.68) respectively. These figures show an improvement from the previous estimates of ($1.18) and ($1.03) for the same periods. The new price target of $11 is based on approximately 2 times the trailing twelve months (TTM) December 2026 estimated sales, which remains consistent with the valuation multiple applied in prior assessments.
The UBS analysts’ commentary highlights the potential of CryoPort’s CGT service offerings to drive the company’s financial performance. They believe that the divestiture of non-core assets and the focus on CGT services will contribute to CryoPort’s ability to generate positive free cash flow and sustain growth over the coming years.
In other recent news, CryoPort Inc. has announced a significant divestiture, selling its CRYOPDP business to DHL for approximately $195 million in cash. This transaction is expected to transform CryoPort’s balance sheet, providing an estimated $450 million in proforma cash, which may be used to pay down substantial debts. The sale also positions CryoPort to focus more intensively on its cell and gene therapy customers, with anticipated growth in this sector. Concurrently, DHL has acquired CRYOPDP and established a strategic partnership with CryoPort, enhancing DHL’s capabilities in the life sciences and healthcare logistics sector. The partnership is expected to bolster CryoPort’s business execution in the EMEA and APAC regions.
In another development, UBS has upgraded CryoPort’s stock rating from Neutral to Buy, setting a price target of $10. The upgrade reflects optimism about CryoPort’s position in the cell and gene therapy market, despite slower-than-expected growth in the industry. Additionally, CryoPort has introduced a new cryogenic freezer, the High-Efficiency 800 C, designed to enhance storage capabilities for fertility clinics and laboratories. This product launch aligns with CryoPort’s efforts to meet the evolving needs of the life sciences industry. These recent developments underscore CryoPort’s strategic moves to strengthen its market position and expand its service offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.