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Investing.com - TD Cowen has reiterated a Buy rating and $55.00 price target on Vericel Corporation (NASDAQ:VCEL), currently trading at $37.03, citing confidence in the company’s MACI Arthro product to sustain over 20% growth for the MACI franchise. The company, valued at $1.88 billion, has received strong analyst support with consensus targets ranging from $45 to $62.
The firm highlighted that while Vericel’s standard MACI platform has delivered strong growth through steady surgeon adoption in recent years, with the company achieving 16.13% revenue growth and maintaining a robust 73.47% gross profit margin, the new MACI Arthro offering represents a significant expansion opportunity. MACI Arthro received regulatory approval in the third quarter of 2024 and is currently rolling out across the United States.
MACI Arthro allows for arthroscopic delivery of MACI to repair cartilage defects of the knee up to 4 cm² in size, enabling surgeons to utilize less invasive techniques with specialized instruments. This expansion increases Vericel’s potential surgeon target base from 5,000 to 7,000 by including those who perform knee cartilage procedures through arthroscopic techniques.
TD Cowen noted that the novel technique should help Vericel drive deeper penetration into the femoral condyle defect segment, which represents the most common knee cartilage injury. The firm estimates approximately 20,000 femoral condyle cartilage defects ranging from 2-4cm² require repair annually in the United States.
This market segment translates to about one-third of the $3 billion addressable market for MACI, according to the research firm’s analysis. InvestingPro data shows Vericel maintains a "GOOD" overall financial health score, suggesting strong positioning to capture this market opportunity. Discover more insights and 12 additional ProTips about Vericel with an InvestingPro subscription.
In other recent news, Vericel Corporation reported its Q2 2025 earnings, showing a narrowed net loss and an increase in revenue. The earnings per share (EPS) were a loss of $0.01, which was better than the anticipated loss of $0.03. However, the company reported revenue of $63.24 million, slightly below the expected $64.61 million. Following these results, Canaccord Genuity adjusted its price target for Vericel’s stock from $61.00 to $58.00, while maintaining a Buy rating. This adjustment was influenced by mixed performance across Vericel’s product lines, with the MACI product missing revenue targets and Epicel generating lower-than-anticipated revenue despite a high number of biopsies. These developments provide investors with insights into the company’s recent performance and analyst perspectives.
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