Vericel Corporation (VCEL) PT Raised to $56 at BTIG

BTIG analyst Ryan Zimmerman raised the price target on Vericel Corporation (NASDAQ: VCEL) to $56.00 (from $55.00) while maintaining a Buy rating.

The analyst commented: "We maintain our Buy and raise our PT to $56 (from $55) following 3Q24 results. VCEL reported rev. of $57.9M (27.0% Y/Y), compared to BTIG/Consensus ests. of $55.2M/$55.2M, driven by strong MACI growth of 18.9% and Epicel sales of $12.1M (63.6% Y/Y). NexoBrid grew 37.5% Q/Q to $1.1M and the number of Burn Centers expanded to 50 (from 40) that ordered NexoBrid. Epicel bounced back on higher grafts per order and greater mind-share in Burn from the NexoBrid launch. FY24 revenue guidance was maintained at $238M-$242M (20%-23%) with ~20% growth for MACI while profitability guidance was nudged higher by 100bps for both GMs and Adj. EBITDA margins to 72% (from 71%) and 22% (from 21%) respectively. The bigger question, which was addressed, was around early FY25 considerations. While some investors may assume that MACI's ~20% Y/Y growth in FY25 is a negative, as it's not accelerating from the Arthro launch, we believe VCEL is setting a reasonable bar from which to begin. We see meaningful upside coming from MACI Arthro in FY25 while NexoBrid builds progressively; both of which are showing healthy underlying metrics early in the launch. These dynamics, coupled with steady, and growing profitability position VCEL shares well into FY25."

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