On Wednesday, Needham, a financial services firm, adjusted its price target for CryoPort Inc (NASDAQ: NASDAQ:CYRX), a logistics company specializing in temperature-controlled supply chain solutions for the life sciences industry. The price target was lowered from $19.00 to $18.00, though the firm maintained a Buy rating on the stock.
The revision followed CryoPort's fourth-quarter 2023 earnings, where the company reported revenue that fell short of market expectations. Additionally, CryoPort's management has provided revenue guidance for 2024 that is also below consensus estimates. Despite these shortfalls, the company's management is optimistic, believing that its MVE business has stabilized and anticipates an uptrend in performance throughout the year.
CryoPort demonstrated a notable increase in its commercial revenue, which grew by 36% year-over-year and accounted for approximately 10% of its total sales in 2023. The company also plays a significant role in the clinical trial market for cell and gene therapies, supporting around 71% of active clinical trials in this sector.
The company's stock was trading at approximately 2.5 times enterprise value to sales during after-hours trading. With expectations for growth to pick up as the year progresses, Needham reaffirms its positive stance on CryoPort's shares. The firm's analyst cited the favorable risk/reward profile as a key reason for reiterating the Buy rating on the stock.
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