Update shared on04 Aug 2025
Fair value Decreased 7.31%Vericel’s consensus price target has been revised down from $58.12 to $53.88, primarily due to macro headwinds facing the MedTech sector such as Medicaid cuts, hospital closures, and negative investor sentiment despite some supportive market factors.
Analyst Commentary
- Broad macro pressures, including Medicaid cuts and hospital closures due to recent legislation, are creating headwinds for the MedTech sector and impacting sentiment.
- Healthcare underperformed the S&P 500 in Q2, and MedTech continues to lag early in Q3.
- Market sentiment is described as extremely binary, with companies either trading at high valuations or being largely ignored by investors.
- Bullish analysts believe concerns regarding Medicaid cuts and hospital stress may be exaggerated in current pricing.
- Positive factors include subdued inflation, strong overall market performance, and a favorable shift in foreign exchange rates.
What's in the News
- Reaffirmed 2025 earnings guidance, including MACI full-year revenue growth in the low 20% range.
- Updated Burn Care revenue guidance for the second half of 2025 to align with recent $10 million per quarter run rate.
- Reaffirmed full-year gross margin guidance of 74%.
- Added to the Russell 2000 Growth-Defensive Index and the Russell 2000 Defensive Index.
- Provided Q2 2025 total revenue growth guidance of 22% to 25%, and reaffirmed full-year total revenue growth of 20% to 23%.
Valuation Changes
Summary of Valuation Changes for Vericel
- The Consensus Analyst Price Target has fallen from $58.12 to $53.88.
- The Consensus Revenue Growth forecasts for Vericel has fallen from 25.7% per annum to 23.5% per annum.
- The Net Profit Margin for Vericel has fallen from 17.57% to 16.18%.
Disclaimer
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