Brendan Smith, an analyst from TD Cowen, has initiated a new Buy rating on Certara (CERT).
Brendan Smith has given his Buy rating due to a combination of factors that highlight Certara’s strong potential for growth and transformation. Certara’s Model-Informed Drug Development (MIDD) platform is a key asset, offering significant cost and time savings for biopharmaceutical companies. This platform has been instrumental in a large percentage of new drug approvals over the past decade, showcasing its broad customer base and the value it provides in the drug development process.
Certara is positioned for above-market growth as it transitions towards a higher-margin business model. The ongoing review of its low-margin regulatory services business could lead to a strategic shift that enhances its revenue mix. Additionally, Certara’s focus on maximizing AI compatibility and expanding its software capabilities further strengthens its competitive edge. These strategic moves, along with its established relationships with regulators and big pharma, make Certara a compelling investment opportunity.