Cryoport On See-Saw Of Expectations: Analysts Cut Price Targets, But Remain Bullish On Long-Term Return

Cryoport Inc CYRX shares are trading lower after the company released certain preliminary results for Q2 FY23 and updated its revenue expectations for FY23.

The company expects Q2 sales of $56.5 million - $57.5 million, representing a decrease of 11%, at the midpoint, compared to Q2 2022 and well below the consensus of $67.4 million. 

Cryoport also lowered its FY23 sales outlook to $233 million - $243 million, down from prior guidance of $270 million - $290 million and falling behind the consensus Of $274.85 million.

B Riley Securities lowered the price target to $22 from $30 while maintaining the Buy rating.

The analyst says CYRX's stock reaction resembles Azenta Inc AZTA, i.e., under selling pressure in the near term without sufficient buyers, and CYRX lacks the massive share buyback support that AZTA has. At a valuation of 2.3x of EV/2023 sales.

The analyst notes that patient shareholders and convertible holders will be rewarded in the long term as the sentiment changes fueled by CYRX back to double-digit growth.

Roth MKM also cut the price target from $40 to $25 and retained the Buy rating, reflecting stalled near-term growth.

The analyst says that competitive pressures are not a factor and sees long-term growth drivers intact. It remains bullish long-term.

Stephens analyst says the magnitude of this guide down is surprising and raises various questions. It suspects much of this relates to MVE/freezers, where the investors had muted expectations; however, the commentary around clinical trial delays and customers falling short of forecasts is "new news." The Overweight rating and the price target of $26 are under review. 

Needham analyst notes the cell & gene therapy opportunity has taken longer than expected to drive CYRX revenue. However, the stock remains a solid play on the space. The analyst maintains the Buy rating with a price target of $30.

Price Action: CYRX shares are down 27% at $14.17 on the last check Thursday.