TD Cowen analyst Josh Jennings has maintained their bullish stance on CERS stock, giving a Buy rating on May 3.
Josh Jennings has given his Buy rating due to a combination of factors including Cerus’s strong start to the year with a notable 24% growth in product revenue for the first quarter. This performance not only exceeded the company’s own high-teen to low-20% growth projection but also surpassed the estimates made by the Street. The considerable growth was driven primarily by North American platelet sales, with the U.S. market showing an impressive increase of over 40% compared to the previous year. Additionally, Cerus’s Canadian operations are nearing complete adoption of their INTERCEPT technology, contributing to the positive outlook. Despite a slight decline in EMEA revenues due to timing issues, the company is optimistic about a rebound in upcoming quarters. Furthermore, Cerus has maintained its full-year revenue guidance, indicating a steady confidence in its growth trajectory.
Commercial momentum is another key factor behind Jennings’s recommendation, especially with the advancements in the INTERCEPT Fibrinogen Complex (IFC) offerings. Cerus is successfully expanding its partnerships with large blood centers and is witnessing a surge in orders through these channels. This complements the efforts of their direct sales team, which is now fully trained and actively converting hospital targets into customers. This strategic progress suggests that Cerus is on track to meet its sales guidance for IFC in 2024. Additionally, the company’s recent positive Phase III trial results for its INTERCEPT Red Blood Cells (RBCs) program showcase potential for future growth, further bolstering Jennings’s positive stance on Cerus’s stock.
In another report released on May 3, Craig-Hallum also assigned a Buy rating to the stock with a $5.00 price target.
CERS’s price has also changed slightly for the past six months – from $1.730 to $1.620, which is a -6.36% drop .
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Cerus (CERS) Company Description:
Cerus Corp. engages in the research, development, and manufacture of biomedical and surgical products. The firm produces blood system for platelets and plasma. It operates through Blood Safety segment. It markets products under the INTERCEPT brand. The company was founded by Laurence M. Corash and John E. Hearst on September 19, 1991 and is headquartered in Concord, CA.
