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.”