BTIG ups Vericel PT to $13 from $8

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BTIG raised its price target for Vericel (NASDAQ:VCEL) to $13 from $8 after the company beat consensus estimates for the fourth quarter and provided strong guidance for 2018. The stock was quoted at $11.15, up $2.80, in afternoon trading on March 5.

Vericel develops, manufactures, and markets advanced cell therapies for the sports medicine and severe burn care markets. 

Analyst Ryan Zimmerman writes that the company is guiding for 2018 revenue of $73-million to $78-million, which is about $4-million higher than the midpoint of Street estimates.

“Vericel’s growth is reflective of both strong patient and physician interest in MACI and continued market penetration of Epicel,” he added. “To that end, management is keeping their foot on the gas pedal supporting growth through various marketing and physician outreach initiatives.”

With biopsy growth accelerating through 2017 while conversion rates to procedures remain steady, “we think management has additional levers to increase revenue in 2018 through increased conversions,” Mr. Zimmerman said.