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Hold Rating on Maravai Lifesciences Due to Filing Delays and Financial Reporting Concerns

Hold Rating on Maravai Lifesciences Due to Filing Delays and Financial Reporting Concerns

William Blair analyst Matt Larew has maintained their neutral stance on MRVI stock, giving a Hold rating on February 26.

Matt Larew has given his Hold rating due to a combination of factors impacting Maravai Lifesciences Holdings. The company recently missed the deadline for filing its 2024 10-K, which followed a postponement of its fourth-quarter and full-year earnings release. This delay was attributed to the need for additional time to complete the year-end review process, including addressing a non-cash impairment charge related to the Alphazyme acquisition and a revenue recognition error.
Despite these challenges, the non-cash nature of the impairment and the minimal impact of the revenue recognition error on full-year revenue are seen as positives. However, the delay in filing and the potential issues with internal controls over financial reporting could undermine investor confidence. Given the stock’s recent sell-off and its current trading valuation relative to peers, Larew has opted for a Hold rating, indicating a neutral stance until further clarity is provided by the company’s forthcoming results and outlook.

In another report released on February 26, Robert W. Baird also downgraded the stock to a Hold with a $3.00 price target.

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