TD Cowen analyst Josh Jennings maintained a Buy rating on Vericel today and set a price target of $55.00.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight Vericel’s promising growth trajectory. The management’s review of the annual MACI revenue cadence indicates that the performance in the first half of 2025 aligns with previous years, suggesting that the low-20% revenue growth target for MACI is attainable. The company expects a significant increase in revenue from the first to the second half of the year, with the fourth quarter being the most substantial. This pattern is supported by a strong initial wave of biopsies that are expected to convert into implants as logistical processes are completed.
Furthermore, the launch of MACI Arthro, a less-invasive procedure, is expanding the potential market by attracting more surgeons and patients. The engagement with approximately 600 surgeons and the positive feedback from early adopters indicate a successful adoption similar to the standard open MACI procedure from a decade ago. This less-invasive approach is expected to lead to higher patient conversion rates due to its benefits, such as reduced post-operative pain and quicker recovery, which are anticipated to drive further growth in the company’s revenue.
In another report released on October 6, Leerink Partners also reiterated a Buy rating on the stock with a $50.00 price target.