In a report released yesterday, Allen Klee from Maxim Group reiterated a Buy rating on Cryo-Cell International (CCEL – Research Report), with a price target of $8.50.
Allen Klee has given his Buy rating due to a combination of factors that highlight Cryo-Cell International’s strong financial performance and strategic positioning. The company reported a 2% year-over-year increase in revenue for the first quarter of 2025, alongside a significant 32% rise in adjusted EBITDA, surpassing expectations. This performance is underpinned by the high margins of their core business in stem cell processing and storage, which boasts a 75.1% gross margin.
Additionally, Cryo-Cell’s ongoing arbitration against Duke University, with potential damages exceeding $100 million, could result in a favorable outcome that strengthens the company’s financial position. Despite the litigation, the company maintains a robust dividend yield of 18.1%, supported by cash flows and access to credit. The stock trades at a lower EV/adjusted EBITDA multiple compared to its peers, suggesting potential undervaluation and upside, which is reflected in the $8.50 price target.
Klee covers the Technology sector, focusing on stocks such as JetAI, Innodata, and Mitek Systems. According to TipRanks, Klee has an average return of -19.7% and a 23.12% success rate on recommended stocks.