H.C. Wainwright analyst Sean Lee CFA maintained a Buy rating on ThermoGenesis Holdings (THMO – Research Report) today and set a price target of $5.00.
Sean Lee CFA has given his Buy rating due to a combination of factors that indicate a promising future for ThermoGenesis Holdings. The company’s financial update showed a net loss, largely due to slower-than-expected certification of the new ReadyStart CDMO suites. However, these have now successfully launched and are expected to begin generating significant revenue in the near future. Moreover, the company reported cash on hand of $4.0M at the end of the third quarter, which is believed to be adequate to cover operations into the second half of 2024.
The company’s shift to CDMO services is seen as a major turning point, with the first clients already moving into the facility and the first CDMO-related revenues expected to be booked in the fourth quarter. Furthermore, new clients are reportedly in the process of negotiating lease agreements and could move in by early 2024. The valuation of the company was maintained with a 12-month target price of $5.00, derived from a risk-adjusted NPV analysis of projected product revenues and rental income through 2030. This shows the potential for significant growth and a positive return on investment, leading to the Buy rating.
Lee CFA covers the Healthcare sector, focusing on stocks such as Plus Therapeutics, Monopar Therapeutics Inc, and Alphatec Holdings. According to TipRanks, Lee CFA has an average return of -21.0% and a 23.53% success rate on recommended stocks.
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ThermoGenesis Holdings (THMO) Company Description:
ThermoGenesis Holdings, Inc. engages in the research, development, commercialization and marketing of automated technologies for cell-based therapies for use in regenerative medicine. It operates through the following segments: Device and Clinical Development. The Device segment includes development and commercialization of automated systems that provide good manufacturing practice, clinical grade cell-banking, cell-processing and cell-based therapeutics. The Clinical Development segment develops autologous stem cell-based therapeutics that address significant unmet medical needs for the vascular, cardiology, and orthopedic markets. The company was founded by Philip H. Coelho in 1986 and is headquartered in Rancho Cordova, CA.
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