Leerink Partners analyst Mike Kratky reiterated a Buy rating on Vericel (VCEL – Research Report) on May 8 and set a price target of $57.00.
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Mike Kratky has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Vericel. Despite a slight decline in first-quarter sales compared to consensus expectations, driven by lower Epicel sales, the company has shown promising signs for future growth. Management’s expectation of a stronger second quarter in the Burn Care franchise, with Epicel grafts from completed and scheduled cases already exceeding those of the first quarter, is a positive indicator.
Furthermore, Kratky is encouraged by the strong performance and potential of MACI, as evidenced by the positive trends in key performance indicators. The number of MACI biopsies reached record levels in March and April, which is unusual for this time of year, suggesting robust demand. Although the variability in Burn Care presents some risk, the strong underlying trends in MACI and the increasing contribution from MACI Arthro offer significant upside potential, justifying the Buy rating.
In another report released on May 9, H.C. Wainwright also maintained a Buy rating on the stock with a $60.00 price target.
VCEL’s price has also changed moderately for the past six months – from $54.000 to $41.870, which is a -22.46% drop .