On Tuesday, Vericel (NASDAQ:VCEL) Corporation (NASDAQ:VCEL) shares received a positive outlook from TD Cowen, with the firm raising its price target on the stock to $72 from $60 while reiterating a Buy rating.
The adjustment reflects the firm's optimism about the company's growth prospects following the recent introduction of MACI Arthro. Currently trading at $57.62, the stock has delivered an impressive 53.38% return over the past year, according to InvestingPro data.
TD Cowen's endorsement comes on the back of Vericel's launch of MACI Arthro, which is seen as a significant growth driver for the company. According to insights from an early adopter of the new offering, MACI Arthro not only has the potential to increase the number of patients who can be treated but also to grow the base of surgeons who perform the MACI procedures.
The company's strong gross margin of 71.47% and revenue growth of 22.48% support this optimistic outlook. For deeper insights into Vericel's financial metrics and growth potential, InvestingPro subscribers can access comprehensive analysis and 12 additional ProTips.
The analyst's interaction with the early MACI Arthro user underpins their belief in Vericel's ability to maintain a 20% or higher revenue growth rate. Vericel's consistent performance is attributed to the ongoing adoption and usage of the MACI platform, a trend that is expected to persist.
The introduction of MACI Arthro is considered a pivotal element in Vericel's long-term growth strategy. The company has consistently showcased robust organic revenue growth over 20%, which has been primarily driven by the MACI platform's success. The analyst's confidence is further reinforced by Vericel's innovation in enhancing its existing MACI platform with the new minimally invasive MACI Arthro technique.
In other recent news, Vericel Corporation has reported a notable increase in its Third Quarter 2024 earnings. The company saw a 27% year-over-year revenue jump, reaching a record $58 million. This surge was primarily fueled by a 19% rise in MACI revenue, which amounted to $44.7 million, and a significant 66% boost in total Burn Care revenue, standing at $13.2 million.
In terms of financial health, Vericel managed to narrow its net loss to $0.9 million and elevated its adjusted EBITDA by 84% to $10 million. The firm's revenue guidance for 2024 remains consistent, projected between $238 million and $242 million.
In terms of analyst insights, Joe Mara noted a potential slowdown in the rate of margin expansion in 2025 due to new facilities' depreciation. On a brighter note, Nick Colangelo expressed optimism for a strong finish to 2024 and continued growth into 2025. These recent developments highlight Vericel's robust financial health and promising outlook.
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