Vericel Corporation (VCEL) PT Raised to $60 at Canaccord

Canaccord analyst Caitlin Cronin raised the price target on Vericel Corporation (NASDAQ: VCEL) to $60.00 (from $58.00) while maintaining a Buy rating.

The analyst commented: "VCEL posted a strong Q2 beating both MACI and Burn Care expectations with growth of 23% including 23% MACI and 22% Burn Care growth in what was a record Q2 for total/MACI/and Burn Care revenues. It was the fifth consecutive quarter of MACI revenue growth of 20%+, bringing MACI's TTM growth rate to 23% (vs. prior TTM growth of 19%). Commercial momentum continues to build, with record biopsies, implants, and surgeon metrics underscoring the ongoing success of the company's expanded sales force, commercial excellence initiatives, and the MACI Arthro rollout. Profitability trends were also robust as it was VCEL's first Q2 of GAAP profitability while the company generated $16M in FCF (bringing its 1H total to nearly $30M). While VCEL again raised FY26 revenue guidance, it emphasized that the increase primarily reflects the Q2 beat while maintaining its existing 2H operating framework, reinforcing what we continue to view as a prudent outlook given current commercial trends and recent momentum. We also like that VCEL is diversifying its capital allocation as it begins to more meaningfully generate cash with the announcement today of an up to $200M share repurchase program. Looking ahead, MACI OUS expansion expected in 2027 (on track and beginning with the UK) and Ankle in 2030+ provide ongoing drivers to growth. All told, we believe VCEL is only just starting to reap the efforts of years of hard work to build a business that is both high-growth and profitable. We reiterate our BUY rating and raise our PT to $60."

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