On Monday, UBS analyst John Sourbeer upgraded shares of CryoPort, a company traded on NASDAQ under the ticker CYRX, from a Neutral to a Buy rating, setting a price target of $10.00. The stock, currently trading at $6.79, has experienced significant volatility, with InvestingPro data showing a 67.7% decline over the past year. According to InvestingPro analysis, the stock appears to be overvalued at current levels. Sourbeer’s assessment indicates that CryoPort is well-positioned to benefit from the cell and gene therapy (CGT) sector, despite the slower-than-expected growth in this industry.
CryoPort’s business, which includes CryoPort Systems, CRYOGENE, and approximately 10% of CryoPDP, relies heavily on CGT, accounting for roughly 60%-65% of its service revenues. The company maintains a strong financial position with a current ratio of 5.29, indicating robust liquidity. InvestingPro subscribers can access detailed financial health metrics and 6 additional ProTips that provide crucial insights into the company’s performance. According to Sourbeer, CryoPort holds a leading market position in clinical trial logistics and has significant involvement with rapidly expanding commercially approved treatments.
The UBS analyst pointed out that the development pipeline for CGT has expanded considerably over the past decade. Furthermore, an analysis of commercial therapies forecasts a compound annual growth rate (CAGR) of more than 30% from 2024 to 2030. This growth is expected to drive mid-teen percentage increases in CGT services for 2025 and beyond.
Sourbeer’s projections suggest that CryoPort will experience low double-digit (LDD+) sales growth, which translates to around 10% or higher, in 2026 and subsequent years. With revenue of $228.4 million in the last twelve months and analyst consensus showing mixed opinions, investors seeking comprehensive analysis can access the detailed Pro Research Report available on InvestingPro, covering all essential metrics and growth indicators. This forecast is more optimistic than the market service demand (MSD) to high single-digit (HSD) percentage consensus. The anticipated growth takes into account the other business lines of CryoPort that may dilute the overall growth rate.
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