On Friday, KeyBanc Capital Markets maintained an Overweight rating on shares of BioLife Solutions (NASDAQ:BLFS), while increasing the price target to $33 from $30. Trading at $26.72, the stock has delivered an impressive 92% return over the past year, according to InvestingPro data.
The firm highlighted that under the leadership of the new CEO, BioLife Solutions has efficiently executed three asset sales. These transactions have reshaped the company into a high-growth, high-margin entity, particularly dominant in the freeze media sector for cell, gene, and CAR-T therapies.
BioLife's Cell Processing platform, which accounts for approximately 90% of the company's operations, is integrated into both marketed and developmental cell and gene products, mostly CAR-T therapies. With a healthy gross margin of 37.5% and revenue growth of 16.4% in the last twelve months, the company demonstrates strong operational efficiency.
The platform is expected to surpass the firm's growth estimate of 18% for the next year and achieve a 28% growth in 2026. This forecast aligns with Evaluate Pharma's prediction of a 34.9% compound annual growth rate (CAGR) for CAR-T sales from 2024 levels.
A notable aspect of KeyBanc's revised model is the anticipated 43% growth in Cell Processing for the third quarter of 2024. CAR-T therapy, which has significantly impacted cancer treatment, currently has six FDA-approved therapies including Kymriah, Yescarta, Tecartus, Breyanzi, Abcema, and Carvykti. These therapies are not only expanding their approved uses but also have a robust pipeline of upcoming treatments.
The firm's confidence in BioLife Solutions is further supported by the data from Evaluate, which underscores the projected growth in CAR-T therapies. Consequently, the price target has been raised to reflect the optimistic outlook on the company's growth trajectory and market position.
InvestingPro analysis reveals the stock's high volatility with a beta of 1.92, while maintaining strong liquidity with a current ratio of 2.78. Discover 11 additional exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, BioLife Solutions has seen significant developments. The company reported a 30% increase in revenue year-over-year for the third quarter of 2024, reaching $30.6 million. Its cell processing platform revenue also grew by 43% to $19 million, and the adjusted gross margin improved to 54%.
BioLife Solutions completed the sale of its freezer subsidiary, Custom Biogenic Systems, for $6.1 million in cash, marking the end of its divestiture from freezer-related businesses. The firm also sold its SciSafe division for $73 million.
Despite these divestitures, BioLife Solutions raised its cell processing revenue guidance for 2024 to be between $72 million and $73 million. The company, however, revised its total revenue guidance for the same year to between $98 million and $100 million due to the sale of SciSafe.
Analyst firms, including TD Cowen and H.C. Wainwright, have shown confidence in BioLife Solutions' strategic decisions, maintaining Buy ratings on the stock and adjusting their price targets. These recent developments indicate the company's successful transition towards a business model centered on consumable, recurring revenue streams with higher margin potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.