CryoPort's Refrigeration Unit Is A Distraction From Core Business: Analyst Expects Divestiture
Portfolio Pulse from Nabaparna Bhattacharya
KeyBanc Capital Markets analyst Paul Knight has downgraded CryoPort, Inc (NASDAQ:CYRX) to Sector Weight from Overweight, citing the company's refrigeration business, MVE, as a distraction from its core business. Knight suggests that CryoPort should either sell the MVE business, base MVE guidance on a fraction of what is internally projected, or demonstrate why MVE is a critical asset. CryoPort's revenue growth and adjusted EBITDA margins are expected to decrease in the coming years.
July 17, 2023 | 6:07 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
CryoPort's stock has been downgraded by KeyBanc Capital Markets due to concerns about its refrigeration business, MVE. The analyst suggests that CryoPort should consider selling the MVE business or demonstrate its importance.
The downgrade by KeyBanc Capital Markets is likely to negatively impact CryoPort's stock in the short term. The analyst's concerns about the MVE business, which has been a primary culprit in CryoPort's recent underperformance, could lead to uncertainty among investors. This could potentially drive the stock price down.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100