TD Cowen has adjusted its target price for Vericel (VCEL, Financial), lowering it from $72 to $55, while maintaining a Buy rating for the company's shares. Despite some challenges with Epicel, Vericel's first-quarter revenue aligned with their guidance, although many investors hoped for a stronger performance. Looking ahead, TD Cowen emphasizes the importance of the company's reaffirmed 2025 revenue targets. They believe that Vericel's guidance of 20% to 23% growth is within reach, with expected significant contributions in the latter half of 2025 from both the Arthro product line and the expanding MACI sales team.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Vericel Corp (VCEL, Financial) is $61.00 with a high estimate of $67.00 and a low estimate of $52.00. The average target implies an upside of 43.26% from the current price of $42.58. More detailed estimate data can be found on the Vericel Corp (VCEL) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Vericel Corp's (VCEL, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vericel Corp (VCEL, Financial) in one year is $48.74, suggesting a upside of 14.47% from the current price of $42.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vericel Corp (VCEL) Summary page.
VCEL Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vericel Corp (VCEL, Financial) reported record first-quarter revenue for Macy and total company revenue, indicating strong business performance.
- The company expects strong second-quarter performance with total revenue growth projected at 22 to 25%.
- Macy's revenue growth was driven by strong fundamentals, including an expanding surgeon customer base and increased biopsies.
- The launch of Macy Arthro has shown significant strength, with trained surgeons driving over 30% biopsy growth.
- Nexarid's first-quarter revenue increased over 200% compared to last year, demonstrating strong growth in the burn care segment.
Negative Points
- First-quarter ES cell revenue was lower than anticipated due to a high ratio of canceled cases related to patient health issues.
- The company reported a net loss of $11.2 million for the quarter, highlighting ongoing financial challenges.
- Operating expenses increased to $49.1 million, primarily due to increased headcount and costs related to a new facility.
- The first quarter typically has the lowest margins of the year, and margins were adversely impacted by lower ES cell revenue.
- There is uncertainty in predicting the cadence of ES cell quarterly revenue due to the variability in the burn care market.
