Lake Street Capital Markets Starts Rapid Micro Biosystems Inc (RPID) at Buy

Lake Street Capital Markets analyst Thomas Flaten initiates coverage on Rapid Micro Biosystems Inc (NASDAQ: RPID) with a Buy rating and a price target of $8.00.

The analyst commented: "Rapid Micro Biosystems is emerging as the category leader in microbial quality control (MQC) automation with its Growth Direct platform, a system that compresses testing timelines from weeks to days, reduces contamination risk, and ensures compliance with increasingly strict regulatory requirements. With 165 systems placed and 146 validated as of 1Q, Growth Direct is gaining traction with top-tier pharma and cell/gene therapy companies (86% of CAR-T players use it). Recurring revenue now represents over 55% of total revenue (vs. 34% in 2021), which includes consumables that carry a ~60% gross margin. Combined with a cost reduction program (2025 cash burn guidance of ~$30M vs. ~$45M last year), a rightsized operating expense base, and a strategic global distribution partnership with MilliporeSigma, we believe Rapid is positioned well to drive durable long-term growth. Despite the recent uptick in share price, we believe the market is yet to fully appreciate the already existing scale and growing adoption of Growth Direct. We see further upside as recurring revenue continues to scale with the stickiness of the platform, and thus, the financial profile evolves toward greater visibility, margin expansion, and operating leverage. We are initiating coverage with a Buy rating and an $8 price target."

For an analyst ratings summary and ratings history on Rapid Micro Biosystems Inc click here. For more ratings news on Rapid Micro Biosystems Inc click here.

Shares of Rapid Micro Biosystems Inc closed at $4.08 yesterday.

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