Canaccord starts Vericel stock at ‘Buy’, touts profitability potential and market expansion
On Friday, Canaccord Genuity initiated coverage on Vericel (NASDAQ:) Corporation (NASDAQ:VCEL) stock, a biopharmaceutical company, assigning a Buy rating and setting a price target of $57.00.
The firm’s analysis highlights Vericel’s diverse biomaterial product portfolio, which includes two BLA-approved products, MACI and NexoBrid, as well as a longstanding product, Epicel.
Vericel has experienced a significant compound annual growth rate (CAGR) of 20% in revenue recently. Canaccord Genuity predicts continued robust growth for the company as it further penetrates its substantial Total Addressable Market (TAM) and introduces new indications to boost market penetration.
The firm also notes Vericel’s anticipated profitability inflection point, which is considered distinctive given the company’s current revenue run rate. This milestone is expected to lead to future cash flow generation. The coverage initiation reflects confidence in Vericel’s potential to capitalize on its past efforts, resulting in substantial growth and nearing profitability.
Canaccord Genuity’s positive outlook for Vericel Corporation is based on the company’s ability to innovate and expand within its market segments. The firm’s $57 price target suggests a strong future performance for Vericel’s stock.
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