Maxim ups BioLife Solutions PT to $26 from $18

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Maxim Group hiked its price target for BioLife Solutions (NASDAQ:BLFS) to $26 from $18 as the company in the second quarter reported a net profit for the first time since inception. The stock was quoted at $19.68 in afternoon trading on Aug. 9.

The company, which is a leading provider of biopreservation tools for cells, tissues and organs, reiterated revenue guidance of $18.5-million to $20-million for 2018. Gross margin guidance also increased to 68% to 70% from 63% to 65%. In addition, BioLife expects full year net profitability.

Analyst Jason McCarthy writes that valuation continues to rise, in-line with his thesis that BioLife is the tangential play to a rapidly growing cell therapy space.

“Important, in our view, is that once an efficacious cell therapy, even at the preclinical stage, is using a particular media (i.e. BioLife's) and is progressing, the last thing one wants to do is change to a new media,” he added. “As such, BioLife becomes ‘sticky’ to that cell therapy, from preclinical to commercial, which is what should drive long-term growth.”

Stephen Kilmer