BioTuesdays

Maxim ups Biolife Solutions PT to $26 from $18

BioLife Logo

Maxim Group raised its price target for Biolife Solutions (NASDAQ:BLFS) to $26 from $18, citing a strengthening balance sheet, with management continuing to execute on its growth strategy. The stock closed at $17.59 on July 7.

Analyst Jason McCarthy writes that Biolife remains a “top pick” in Maxim’s coverage universe for 2020.

Biolife has reported preliminary revenues of $9.6-million to $9.8 million for the second quarter of 2020. Mr. McCarthy said that while this represents a sequential decline of about 20% from the first quarter, “the decline was expected due to COVID-19, but still represents an increase of about 45% year-over-year.” 

Since achieving profitability in the second quarter of 2018, BioLife has implemented an M&A strategy with the goal of increasing its share of the “per-dose spend” in cell and gene therapy from initial levels of $100-to-$500, Mr. McCarthy said. 

With $75-million-plus added to the balance sheet, “we believe that additional acquisitions are likely,” he added. “With the ongoing pandemic, Biolife may actually be able to acquire new assets at a discount since small caps have been hit harder than the broader market.” 

Sign up for the BioTuesdays weekly newsletter

Get the latest news on the healthcare industry’s corporate and clinical developments, executive moves, and market updates. Every Tuesday, in your inbox.