Last Updated: 17 Oct 2024
Executive Summary
Cerus Corporation (CERS) is a biomedical products company focused on improving blood safety through its INTERCEPT Blood System. Despite a challenging operating environment, the company has demonstrated growth in revenue and gross profit over the past year. However, profitability remains elusive, with negative EBITDA and EPS. Analysts remain cautiously optimistic about the company's long-term prospects, with a consensus target price of $4.38.
Company Overview
Cerus Corporation is headquartered in Concord, California, and operates in the surgical and medical instruments and apparatus industry. The company's primary product, the INTERCEPT Blood System, is designed to reduce the risk of transfusion-transmitted infections by inactivating pathogens in blood components.
Fundamental Analysis
Revenue: Cerus reported revenue of $169.98 million for the trailing twelve months (TTM), a 16% increase year-over-year.
Gross Profit: Gross profit for the TTM was $87.09 million, representing a gross profit margin of 51.3%.
Net Income: The company reported a net loss of $12.05 million for the TTM, resulting in a net profit margin of -14.1%.
EPS: Diluted EPS for the TTM was -$0.13.
EBITDA: EBITDA for the TTM was -$12.05 million.
Return on Assets: Return on assets for the TTM was -4.71%.
Return on Equity: Return on equity for the TTM was -47.3%.
Technical Analysis
52-Week High: $2.585
52-Week Low: $1.21
50-Day Moving Average: $2.002
200-Day Moving Average: $1.964
Current Price: $1.80
The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Short Term Outlook
In the short term, Cerus Corporation faces challenges due to its ongoing losses and negative cash flow. The company's ability to improve profitability and secure additional funding will be crucial for its near-term prospects.
Long Term Outlook
Analysts are cautiously optimistic about Cerus' long-term outlook. The INTERCEPT Blood System has the potential to address a significant unmet need in blood safety. However, the company needs to demonstrate sustained profitability and gain market share to justify its current valuation.
Analyst Recommendations
Strong Buy: 1
Buy: 3
Hold: 2
Sell: 0
Strong Sell: 0
The consensus analyst target price for CERS is $4.38, implying a potential upside of over 143% from the current price.
